Supply Chain Disruptions & Business Interruption: Are You Properly Covered?

Supply Chain Disruptions & Business Interruption: Are You Properly Covered?

| July 28, 2026

Over the past several years, supply chain disruptions have become more common — and more costly.

For many Chicago area businesses, the real financial impact of a loss isn’t property damage. It’s the interruption to revenue.

What Business Interruption Insurance Covers

Business interruption coverage can help replace:

  • Lost income

  • Ongoing payroll

  • Increased expenses

  • Temporary relocation costs

But the structure and limits vary significantly between policies.

The Overlooked Risk: Contingent Business Interruption

If a key supplier, manufacturer, or distributor suffers a loss, your operations could halt — even if your property remains undamaged.

Contingent business interruption coverage may respond in these situations, but it must be specifically included.

Other Critical Questions

  • Is your business income limit adequate?

  • Does coverage reflect current revenue levels?

  • How long is the indemnity period?

  • Are extra expense endorsements included?

Many policies were written based on revenue levels from several years ago.

If your business has grown, your coverage should grow with it.

Mid-Year Is the Ideal Time

July is a natural checkpoint for revenue trends and operational adjustments.

If your company relies on suppliers, equipment, or continuous operations, schedule a mid-year business interruption review to ensure your protection matches your current scale