What type of insurance would cover losses due to a supplier's business interruption?

Contingent business interruption insurance is specifically designed to protect a business from financial losses that occur due to disruptions in the supply chain caused by the interruption of a supplier's operations. This type of insurance covers income that would have been earned had the interruption not occurred, allowing businesses to maintain some level of financial stability during periods when their suppliers cannot deliver goods or services.

In this context, while general liability insurance typically protects against bodily injury and property damage claims, and property insurance covers physical damage to the business's own assets, they do not cover losses resulting from interruptions in a supplier's operations. Workers' compensation insurance is intended for employee-related injuries and does not address business interruptions or supply chain issues. Thus, contingent business interruption insurance is the most appropriate choice for situations involving losses related to a supplier's inability to perform their business functions.