A contingent business income loss may also arise when a key supplier has a covered loss, rendering a critical component unavailable or requiring significant effort to obtain and incorporate into the manufacturing process. Often, alternative suppliers may not be able to meet the pre-loss specifications, resulting in further delays. A contingent business income loss may also arise when a key supplier has a covered loss, rendering a critical component unavailable or requiring significant effort to obtain and incorporate into the manufacturing process. Often, alternative suppliers may not be able to meet the pre-loss specifications, resulting in further delays. Photo: 5m3photos/Adobe Stock

Supply chain disruptions may have significant impacts on indemnity periods for insureds. Indemnity periods refer to the time taken to restore normal business operations following an insured event.

Disruptions that occur during an indemnity period can cause delays or interruptions in the flow of goods or services from suppliers. Such delays may lead to lengthier periods of repair. In turn, increasing lost sales, missed deliveries and other operational challenges.


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