Glossary / Policy structure / Contingent Business Income Coverage

Contingent Business Income Coverage

Also known as: contingent business interruption · contingent business income coverage · CBI insurance

Policy structure DICEE: Insuring Agreement

Coverage for income you lose when a supplier or customer you depend on suffers a loss that disrupts your business.

Contingent business income (CBI) coverage responds when your income is interrupted not by damage to your own property, but by a covered loss at another business you depend on, typically a key supplier or a major customer. If a critical supplier's facility is shut down by a covered event and you cannot operate as a result, CBI coverage can replace the income you lose. It extends ordinary business income coverage beyond your own four walls to the dependencies in your supply chain, which matters for hardware, manufacturing, and product startups whose revenue relies on specific vendors.

Where you'll see it

PolicyQuote

Why it matters for your business

  • Your income can stop because of a supplier's loss, not just your own; CBI is what responds to that.
  • Especially relevant for hardware, manufacturing, and product companies with concentrated suppliers.
  • Standard business income coverage only responds to losses at your own premises.

People also ask

What is contingent business income coverage?

It is coverage that replaces income you lose when a business you depend on, such as a key supplier or major customer, suffers a covered loss that disrupts your operations. Unlike standard business income coverage, it responds to losses at another company's premises, not just your own.

Who needs contingent business income coverage?

Companies whose revenue depends heavily on specific suppliers or customers, such as hardware, manufacturing, and product startups. If one critical vendor going down would stop your revenue, CBI coverage is worth evaluating.

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Definitions are educational and may be modified by your specific policy language, endorsements, and state rules. For regulatory guidance, refer to the California Department of Insurance or the NAIC.

Reviewed by Andrei Craciunescu, CA Licensed Insurance Broker #4467994

Last updated: July 2026.