Contingent Dependent Properties Insurance: Understanding the Basics - Including Direct Versus Indirect Losses


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The purpose of this coverage is to protect the company when these suppliers or customers sustain a covered property loss that shuts down their businesses, leaving the company without a supplier or customer and thus resulting in significant financial loss.

Although this article has touched on some of the insurance provisions and disputes that can arise when a loss occurs, it is imperative that companies needing this type of insurance confer with insurance professionals who understand the coverage and the loss exposures the companies face.

Obtaining this coverage while being advised by an insurance professional can effectively mitigate or minimize the financial loss that might result in the absence of such coverage.


Donald S. Malecki, CPCU

Mr. Malecki was a principal of Malecki Deimling Nielander & Associates, LLC, an insurance and risk management firm. Over a career that spanned more than half a century, he held the titles of insurance underwriter, broker, insurance company claims consultant, archivist, historian and teacher.



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Adjusting Today Basis for Institutes CE Courses

The Institutes, the leader in providing knowledge solutions for risk management and the property/casualty insurance industry, offers continuing education courses based on technical information compiled from issues of Adjusting Today . The courses — “Valuing a Property Insurance Claim” and “Natural Disasters: Coverage Issues”— include seven modules each and are approved for credit by insurance departments in most states. They are offered to property insurance producers, adjusters or both, depending on the state, for up to three continuing education credit hours per course. More information is available at