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Beyond the Factory Floor: Why Supply Chain Resilience Is Now a Core Insurance Priority

  • Oct 21, 2025
  • 4 min read

Updated: Nov 19, 2025

Protect Your Business with Contingent Business Interruption (CBI) Insurance



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The following report highlights the ongoing supply chain issues experienced globally since the 2020 COVID-19 pandemic and provides readers with the information they need to make informed decisions about their business.


Contingent Business Interruption (CBI) insurance coverage is becoming vital to every enterprise - global or domestic - and Wilson M. Beck Global Risks Inc. wants to ensure that you have all the information you need to understand your business, the global insurance market, and how you and your business can stay resilient, compliant, and in business while navigating the complexities of today’s global supply chain.



To download the full report, click below



Report Highlights


The following report highlights the ongoing supply chain issues experienced globally since the 2020 COVID-19 pandemic and provides readers with the information they need to make informed decisions about their business. Contingent Business Interruption (CBI) insurance coverage is becoming vital to every enterprise - global or domestic - and Wilson M. Beck Global Risks Inc. wants to ensure that you have all the information you need to understand your business, the global insurance market, and how you and your business can stay resilient, compliant, and in business while navigating the complexities of today’s global supply chain. 


Herein, you will find: 


  • The Hidden Weak Link: How Supply Chain Disruptions Are Redefining Risk

  • The Expanding Definition of Supply Chain Risk

  • CBI: The Risk You Can’t Control

  • Digital Dependencies: The New Weak Link

  • The Market’s Response

  • Contingent Business Interruption (CBI) Insurance: A Modern Necessity

  • Building Resilience: Practical Steps for Risk Managers

  • From Coverage to Resilience




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Key Trends & Critical Data


15% of large cyber claims (>$1M) in 2025 were linked to CBI supply chain events (up from 6% in 2024).


  • MOVEit breach (2023):

    • Over 2,500 organizations affected globally (banks, healthcare, logistics, governments).

    • Exposed hidden dependencies in software supply chains.


  • CDK Global outage (2024):

    • Impacted thousands of auto dealerships.

    • Estimated total losses: USD $1.02 billion.


  • Digital dependency examples:

    • 600 organizations breached via MOVEit (Reuters, 2023).

    • Even short API/cloud outages can lead to multi-million-dollar losses (New Relic, 2025).




CBI Events Now Account for a Growing Share of Large Cyber Claims


Chart for CBI Events

Over the past five years, risk managers have watched seemingly isolated events, such as pandemics, cyberattacks, port blockages, political unrest, and extreme weather, cascade across industries and continents. What once felt like isolated disruptions now feel like systemic shocks.


Systematic Supply Chain Events Driving Multi-Billion Dollar Losses


Chart for Systemic Supply Chain Loss



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Drastic Shifts in the Supply Chain Risk Landscape


Supply chain risk has evolved from physical disruptions (fires, floods, shipping delays) → to digital interdependencies (software, cloud, APIs).


CBI losses rising sharply due to:


  • Cyber incidents

  • Vendor outages

  • Geopolitical and climate volatility


Modern supply chains now integrate both physical and digital ecosystems — blurring traditional coverage boundaries.






Impacts on the Insurance Market in 2025


Underwriting tightening:

  • Insurers demand supplier maps, continuity plans, and vendor risk data before granting CBI limits.


Policy adjustments:

  • Increased use of sublimits, parametric options, and exclusions for unnamed suppliers or digital service outages.


Market Studies:

  • BCG: Commercial insurers adapting to higher claims costs and digital risk modeling.

  • Aon: Overall softening market, but CBI and property coverage remain tight and selective.

  • Gallagher: More detailed underwriting, enhanced BI coverage, and stricter review of terms.

  • Hannover Re: Notes continued rise in CBI claims globally due to increased complexity.

  • Allianz : Supply chain disruptions among top drivers of large commercial claims.





What Can Risk Managers Do?


  • Map Tier-1, Tier-2, and Tier-3 suppliers to identify hidden dependencies.

  • Evaluate digital vendor resilience (cloud, IT, logistics).

  • Integrate technology contingencies into continuity plans.

  • Use real-time monitoring and scenario simulations to detect vulnerabilities.

  • Collaborate closely with insurers for aligned CBI coverage.

  • Treat resilience as an ecosystem function — built on visibility, agility, and collaboration, not just control



Key Takeaways


  • CBI (Contingent Business Interruption) is no longer a niche product — it’s now a core insurance priority for 2025 and onward

  • Modern CBI covers both physical and digital disruptions.

  • Resilience depends on proactive risk mapping and insurer collaboration — not just recovery after loss.

  • The next disruption could come from a flood or a data center outage — readiness for both is essential.




Get the WMB Difference


Need Help?

 

Contact Wilson M. Beck Global Risks to discuss how to protect your business - wherever it takes you.


Wilson M. Beck Global Risks Inc. is a boutique division of Wilson M. Beck Insurance Services, offering tailored insurance and risk management solutions backed by over 100 years of combined experience.


Our team delivers personalized service rooted in trust, collaboration, and genuine care, ensuring every client feels understood, supported, and confident in their protection.


Our specialization in multinational insurance and corporate risk solutions is designed for mid-sized to large organizations that demand personalized service, specialized expertise, and seamless execution – wherever your business grows.


Contact Wilson M. Beck Global Risks to find out more about how our team of global experts can protect your operations and help keep you resilient, compliant, and in business.



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