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🏭 '''Dependent property''' is a term used in [[Definition:Commercial property insurance | commercial property]] and [[Definition:Business interruption insurance | business interruption insurance]] to describe a location or operation owned by a third party—not the [[Definition:Policyholder | insured]]—on which the insured's business financially depends. When physical damage at a dependent property disrupts the insured's ability to earn revenue or maintain operations, a [[Definition:Contingent business interruption insurance | contingent business interruption]] or dependent property coverage endorsement can respond, filling a gap that a standard business interruption policy—limited to losses arising from damage at the insured's own premises—would not cover.

🔄 Dependent properties generally fall into four categories: contributing locations (suppliers that furnish materials or services), recipient locations (customers that purchase the insured's products), manufacturing locations (facilities that make goods the insured sells), and leader locations (nearby businesses whose presence attracts customers to the insured). If a fire shuts down the insured's sole raw-material supplier, for example, the resulting loss of income at the insured's own plant can be covered under a dependent property endorsement. [[Definition:Underwriting | Underwriters]] evaluate the insured's supply chain concentration, the geographic spread of key suppliers and customers, and the availability of alternative sources when determining coverage terms, [[Definition:Sub-limit | sub-limits]], and [[Definition:Waiting period | waiting periods]].

📈 Supply chain disruptions—from pandemic-related factory shutdowns to natural catastrophes striking major manufacturing hubs—have elevated dependent property coverage from a niche endorsement to a central concern in [[Definition:Risk management | risk management]] discussions. Businesses with concentrated supplier or customer relationships face outsized exposure, and [[Definition:Insurance broker | brokers]] increasingly conduct supply chain mapping exercises to quantify the risk and negotiate adequate limits. [[Definition:Insurtech | Insurtech]] companies are developing data-driven tools that monitor global supplier networks in real time, enabling both insurers and insureds to identify vulnerable dependent properties before a loss occurs rather than discovering the gap after it is too late.

'''Related concepts:'''
{{Div col|colwidth=20em}}
* [[Definition:Contingent business interruption insurance]]
* [[Definition:Business interruption insurance]]
* [[Definition:Supply chain risk]]
* [[Definition:Commercial property insurance]]
* [[Definition:Sub-limit]]
* [[Definition:Contingent extra expense coverage]]
{{Div col end}}

Definition:Dependent property - Revision history

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