How Business Interruption Insurance Can Protect Supply Chains After A Hurricane

As witnessed by the devastating impacts of hurricanes like Helene and Milton, natural disasters can do more than just damage physical premises — they can also wreak havoc on supply chains. For businesses, an interruption in the supply of raw materials, goods, or services can have a crippling effect on operations, leading to lost revenue, delayed production, and strained client relationships. Yet, many business owners and general counsel may not realize that their business interruption insurance could provide a lifeline in these challenging times.

The Overlooked Coverage For Supply Chain Disruption

While most businesses are familiar with the basics of business interruption (BI) insurance — coverage that compensates for lost income when a company's operations are disrupted due to physical damage — there is a lesser-known but equally important facet of this coverage: Contingent Business Interruption (CBI).