Insurance Business Magazine considers the question of whether a firm’s cyberinsurance will cover a breach at its vendor.
The detail that matters for insurance brokers is not that a breach occurred – it is how. Ryan Specialty’s 2026 analysis of Dependent Business Interruption (Dependent BI) coverage puts the structural problem plainly: “Each of these events shares a common feature: the organisations that suffered operational and financial disruption were not the ones who were attacked. Their vendor was. The question for those downstream organisations is whether their own cyber insurance policy covers the loss.”
Dependent BI – also referred to as Contingent Business Interruption in some policy forms – responds when an insured suffers loss or extra expense from a disruption at a third-party vendor, where the insured’s own environment is not the point of failure.
Ryan Specialty noted that coverage triggers vary between carriers.
Read more at Insurance Business Magazine.
