Contingent Expense and Business Interruption Risks Plague Supply Chains: Potential Losses Make Appropriate Insurance Coverage More Critical Than Ever

Businesses in the food and beverage industry often obtain first-party property insurance to cover losses associated with damage to their own property. They can face significant risks associated with damage to key customers’ or key suppliers’ property – generally referred to as “dependent” or “contingent” property. Yet these businesses often have insufficient coverage, or none at all, for contingent business interruption (CBI) and contingent extra expense (CEE) losses, and nowhere is this more crucial than in the food and beverage industry, where a series of component parts or ingredients constitute the final product.