Tag Archives: Contingent Business

Undefined Term in Business Insurance Policy Must be Interpreted with Reference to Industry Specific Meaning to Satisfy Insured’s Reasonable Expectations

In an unpublished decision, the Ninth Circuit Court of Appeals recently used extrinsic evidence to interpret the meaning of “direct supplier” in the context of a commercial property loss.1 I previously blogged about this case in 9th Circuit to Interpret Meaning of “Direct Supplier” In Context of a Commercial Property Loss Claim.… Continue Reading

9th Circuit to Interpret Meaning of “Direct Supplier” In Context of a Commercial Property Loss Claim

Commercial property insurance policies often include damages sustained by a “direct supplier.” As an example, an insured that sells motorcycles, might rely on a particular motor cycle part supplier to provide parts used in their motorcycles. If the motorcycle part supplier sustains a loss, it could impact the insured’s business.… Continue Reading

Businesses Affected by Hurricane Sandy Should Reasonably Expect Recovery Under Contingent Business Insurance

Hundreds of thousands of businesses were affected in one way or another by Hurricane Sandy. The insurance industry estimated over $20 billion dollars in business income losses. Many have presented insurance claims for their lost profits that have been denied because the business was not completely “shut down” or it did not sustain “direct physical … Continue Reading

Hurricane Sandy’s Supply Chain Disruptions Will Be Significant and Complicated

The 2011 losses Japan and Thailand rippled through the oceans as many realized that our global economy had become highly interdependent and supply chain disruptions were costlier than ever anticipated. A few months ago, global insurers revamped their Contingent Business Income questionnaires and applications in an effort to understand how deeply interrelated and exposed their … Continue Reading

Missouri Jury Awards $11 million in Contingent Business Income Case – Understanding Business Interruption Claims

I recently noted the importance of Contingent Business Income (CBI) coverage in Are Your Business Relationships Insured? – Understanding Business Interruption Claims. CBI coverage protects an insured from income losses caused by an interruption or slow-down in the operations of a “dependent business” (i.e., purchasers, suppliers, distributors or service providers). A Missouri jury understood the … Continue Reading

Are Your Business Relationships Insured? – Understanding Business Interruption Claims

When it comes to relationships, businesses are as vulnerable as people. Just like in our personal relationships, businesses depend on the performance and accountability of third parties. When relationships fail, it’s hard to get back out there. Many businesses rely on outside purchasers, suppliers and distributors on a daily basis. These relationships are often stable and … Continue Reading

Contingent Business Coverage and Extra Expense Coverage May Help Those that Were Not Directly Affected by Hurricane Irene and Lee, Understanding Business Interruption Claims, Part 90

Millions of businesses have been affected directly or indirectly this hurricane season. Hurricane Irene and Tropical Storm Lee caused significant structural and infrastructure damages, expansive floods and lengthy power outages. Many so-called coverages will play important roles in the adjustment and recovery process. Proper training and in depth understanding of all available coverages and remedies … Continue Reading

Ownership of Interdependent Business Does Not Necessarily Foreclose Coverage – Understanding Business Interruption Claims, Part 84

Contingent business coverage is a type of business interruption coverage intended to protect the “dependent business” from an external business income exposure. There are four (4) types of dependent business ISO endorsements: Contributing Premises, such as the businesses that deliver materials to the insured; Recipient Premises, such as the businesses that receive the insured’s products; … Continue Reading