Contingent Business Interruption Calculator

Contingent BI covers losses from damage at a dependent business. This calculator sizes the loss.

Dependent monthly revenue

Dependency loss months

Mitigation offset %

Monthly fixed costs

Contingent BI loss

$733,750

Revenue loss (net)

$543,750

Fixed cost loss

$190,000

How the math works

Loss = revenue × months × (1 − mitigation) + fixed costs × months.

List dependent properties explicitly on the policy. Blanket CBI endorsements often sub-limit at $100-250k — plenty for a dependent supplier, not enough for a retail anchor that drives 40-60% of property traffic.

How to Use

Enter monthly revenue dependent on the affected party.
Enter months of dependency loss.
Enter mitigation offset %.
Enter fixed costs continuing during loss.
Read contingent BI loss.

Frequently Asked Questions

What triggers contingent BI?

Damage to a 'dependent property' — supplier, customer, attraction (anchor tenant), or utility. Must be listed on the policy or covered via blanket endorsement. Requires same perils trigger as direct BI.

Dependent property types?

Contributing (supplier), recipient (customer/distributor), manufacturing (co-dependent plant), leader (anchor tenant drawing traffic). Each with separate sub-limits — sum them during underwriting, not after loss.

Mitigation requirement?

Insured must pursue reasonable mitigation (alternate suppliers, relocate sales, reduce variable costs). Failure to mitigate cuts recovery. Document every vendor alternative pursued and its economics.

How often should I rerun this?

Rerun this calculator whenever inputs change materially — new rent roll data, rate moves, loan balance updates, or quarterly operating data. For active deals, monthly refresh is typical. For stabilized assets under monitoring, quarterly is fine. Treat the output as a decision tool, not a one-time answer — market conditions evolve and so should your analysis.