plexus strategic insurance

Why contingent business interruption coverage is essential for firms big and small

Is your business properly protected if events out of your control affect your business's ability to conduct normal operations? You might need interruption coverage. When disaster strikes other firms, the effect on your business can be chilling, even catastrophic.

Consider these scenarios:

-- A fire damages top local outlet selling your goods, leaving the store closed through the busy holiday season.

-- An explosion damages your key supplier of component parts for your product, leaving it offline for a month.

-- A key manufacturer for your product has its machinery heavily damaged during a tornado. It takes several weeks to find a new manufacturing partner.

Here is the bad news: a standard business owners policy might not protect you from retailers or suppliers ceasing operations for an extended period of time. Also, business interruption insurance generally applies only to events directly affecting your property, such as a plant fire.

But here is the good news: there is coverage to shield your business from another firm's bad luck. The coverage is dependent properties insurance, or contingent business interruption coverage.

Contingent business interruption insurance generally takes effect after a loss or damage from the dependent property (i.e., a manufacturer, a key store in which your goods are sold, etc.). The coverage ends when you replace or restore the dependent property, or up to a certain period of time as outlined in the policy. The amount of loss covered netted against your ability to find other suppliers or outlets for your products until the dependent property is restored.

Let’s have a conversation

You work too hard to have another firm’s plain bad luck hurt your business.

The risk prevention experts at The Plexus Groupe empower growth-orientated companies like yours by reducing exposures, improving cost efficiencies, and protecting your most valued assets.

For more information, contact a Plexus property & casualty client executive at 847-307-6100. We're here to help, and we're happy to help.