Glossary

Contingent business income

Coverage for income lost when physical damage at a supplier, customer or other business you rely on, not your own premises, slows or stops your operations.

Also called: contingent business interruption, CBI, dependent properties coverage, business income from dependent properties

Standard business income coverage responds to damage at your own insured premises. Contingent business income covers the revenue you lose when a property you depend on is damaged by a covered cause of loss: the sole supplier of a key component, the plant that buys most of your output, or the anchor store that draws your customers.

On ISO forms this is an endorsement, CP 15 08 (Business Income From Dependent Properties, Broad Form), attached to the business income form CP 00 30. The mechanics are strict. You schedule each dependent property by name and address, and the cause of loss must be one your policy would cover at your own location. A supplier you did not list, or a flood your policy excludes, takes the claim out. Whether a supplier's own supplier counts is worth asking before you buy.

Say a bakery buys all its flour from one mill (a hypothetical). A fire closes the mill for six weeks. If the mill is not scheduled, the bakery's lost sales are uninsured even though its own building is untouched.

Limits are often sublimited, so compare the amount with what the dependency is worth to you. See contingent business interruption insurance and supply chain risk for supply chain scenarios and dependent business interruption for the cyber version.

Last reviewed October 10, 2026

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Related terms

Business income Property coverage that replaces net income and continuing operating expenses, including payroll, while a covered physical loss suspends operations. Extra expense Property coverage for the added costs of staying open after a covered loss, such as a temporary location, rented equipment or overtime. Period of restoration In a business income policy, the time for which lost income is covered, from a waiting period after damage until repairs should be done or operations resume. Dependent business interruption Cyber coverage for income lost when an outage or attack at a provider you rely on, such as a cloud host or payment processor, halts your operations. Civil authority Business income coverage for a shutdown when a government order blocks access to your premises because of damage to nearby property.

Related guides

Business interruption insurance: how business income coverage works What business income coverage pays after a covered physical loss, how the 72-hour wait, period of restoration and extended income work, and where the gaps are. The endorsements small businesses most often need The endorsements contracts and coverage gaps most often call for, with ISO form numbers: additional insured, waiver, primary, ordinance or law and more. Contingent business interruption insurance and supply chain risk Contingent business interruption pays lost income when a supplier's or customer's property is physically damaged. How the forms work and where they fall short. Cyber business interruption and dependent system failure How cyber policies pay lost income and extra expense when systems go down, how waiting periods and dependent business interruption work, and what to ask. Supply chain risk and insurance: what is covered and what is not How to map and score supplier risk, which insurance lines respond to supply chain losses, and the disruptions no policy covers: tariffs, strikes, insolvency.

Related industries

Food and beverage manufacturer insurance What food and beverage makers need: products liability, contamination and recall cover, spoilage and breakdown, FSMA preventive controls, retailer limits. Manufacturer insurance What manufacturers need: products liability, recall, property with equipment breakdown, workers' comp for plant hazards, vendor's endorsements and contracts.

Related en español

Seguro de interrupción de negocios: cómo funciona la cobertura de ingresos Qué paga la cobertura de ingresos del negocio tras una pérdida física cubierta: la espera de 72 horas, el periodo de restauración, la extensión y los huecos.