When disaster strikes, most business owners think about their own property, operations, and staff. But what happens when another business — one that you depend on — suffers a loss? That’s where Contingent Business Interruption Insurance (CBI) comes in.

It’s a lesser known but incredibly important form of coverage that could be the financial lifeline your company needs when the unexpected happens elsewhere.

Unlike standard business interruption insurance , which covers your losses when your business operations are directly impacted by a covered peril (like a fire or storm ), contingent business interruption steps in when your suppliers, manufacturers, or key customers are affected.

In other words, contingent business interruption protects you from indirect risks—when your income takes a hit because someone else’s business is temporarily out of action.

If your business is in Tempe , Phoenix , Scottsdale , Tucson , Gilbert , or Chandler and relies on a tight supply chain, contingent business interruption might be crucial. You're especially at risk if:

You rely on a single manufacturer or supplier You work with distributors or third-party shippers You have a few major clients who account for most of your revenue You source inventory or materials internationally

A Phoenix-based electronics company suffers income loss when a factory fire in Asia delays parts for weeks. A restaurant in Tempe can’t open fully because their bakery partner experiences a kitchen fire. A Tucson clothing brand loses sales after its main warehouse is damaged by a flood.

contingent business interruption insurance may help reimburse:

Lost income and profits Fixed operating expenses (like rent and payroll) Costs to temporarily shift suppliers or operations Extra expenses to reduce further loss

Keep in mind: the loss must be caused by a covered peril, such as fire, natural disaster , vandalism , or civil authority action (e.g., government-mandated shutdown).

It’s just as important to know what contingent business interruption doesn’t cover:

Pandemics (unless specifically endorsed) Cyberattacks (unless added via rider ) Non-scheduled suppliers or customers Voluntary shutdowns or general slowdowns

In Arizona cities like Tempe, Phoenix, Scottsdale, and beyond, businesses operate in a highly interconnected economy. Many rely on imported goods, regional shipping networks, or local partners. If just one link in that chain breaks, your operations could stall—even if your doors are open.

Whether you're a manufacturer in Chandler, a distributor in Tucson, or a retail business in Gilbert, CBI helps you stay financially secure when others can’t deliver.

Contingent Business Interruption Insurance might be the missing piece in your commercial insurance plan. Don’t wait until a supplier shutdown or client closure puts your business on hold.

Reach out to Riseson Insurance in Tempe to get a quote and learn how we can help you stay resilient in uncertain times. Call us today at 602-460-5470 — we serve businesses across Tempe, Phoenix, Scottsdale, Tucson, Gilbert, and Chandler.

What Is Contingent Business Interruption Insurance?

Who Should Consider CBI?

Examples:

What Does It Cover?

What It Doesn’t Cover

Why It Matters for Arizona Businesses

Secure Your Supply Chain with the Right Coverage

• You rely on a single manufacturer or supplier
• You work with distributors or third-party shippers
• You have a few major clients who account for most of your revenue
• You source inventory or materials internationally

• A Phoenix-based electronics company suffers income loss when a factory fire in Asia delays parts for weeks.
• A restaurant in Tempe can’t open fully because their bakery partner experiences a kitchen fire.
• A Tucson clothing brand loses sales after its main warehouse is damaged by a flood.

• Lost income and profits
• Fixed operating expenses (like rent and payroll)
• Costs to temporarily shift suppliers or operations
• Extra expenses to reduce further loss

• Pandemics (unless specifically endorsed)
• Cyberattacks (unless added via rider )
• Non-scheduled suppliers or customers
• Voluntary shutdowns or general slowdowns