Contingent or Dependent Business Interruption
Contingent or Dependent Business Interruption refers to the insured’s loss of income as a result of an interruption in service from a third-party service provider. Businesses depend on third-party service providers such as vendors and suppliers to make an income. A simple example of depending on a third party is the credit card processing done by a third party for an online store. If the credit card processor goes down, the business will not be able to collect revenue.
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See also: Business Interruption Insurance