The 1992 Chicago flood required that Marshall Fields downtown store close its doors for several days while crews worked to clean up damage caused by the flood waters.If Marshall Fields reduced its orders to suppliers of its goods, these suppliers would experience losses caused by the water damage, even though their own property was not damaged.Identify these losses.
A)Dependent losses
B)Contingent business interruption losses
C)Extra expense losses
D)Preventative losses
E)Facultative business interruption losses

Question

Quizplus · Accepted Answer

Contingent business interruption losses occur when a business suffers losses due to damage to the property of a supplier or customer, not their own property. In this scenario, the suppliers experience losses because Marshall Fields, their customer, reduces orders due to the flood damage at Marshall Fields' location, not the suppliers' own properties.

The 1992 Chicago Flood Required That Marshall Fields Downtown Store