You’ve got your house in order. Your safety protocols are strong, clients are happy, and systems are humming. But then something breaks, and it wasn’t even your fault. Sound familiar?
That’s the quiet risk staffing leaders often overlook—when your business doesn’t suffer a direct loss, but your revenue does. That’s where contingent business income coverage comes in. It is not just a nice-to-have; it is a strategic move for firms looking to protect their cash flow from unexpected disruptions.
The blind spot in most business income coverage
Most staffing executives understand business income insurance at a high level. It covers lost income and extra expenses if your office burns down, gets flooded, or is shut down due to a covered loss. Think of it as revenue protection that keeps the lights on while you rebuild.
But what happens if your payroll processor goes dark for a week because of a cyberattack? Or your biggest client shuts down their facility after a sprinkler system explosion? You didn’t suffer a direct hit, but your revenue sure did. Contingent business income coverage fills that gap by covering lost income when a key partner, vendor, or customer is taken offline by a covered event, resulting in financial fallout for your business.
Staffing is a relationship-driven model
Staffing firms don’t operate in a bubble. They rely on outside systems and partners to deliver their services. That’s especially true in light industrial and healthcare staffing, where access to client facilities, timekeeping platforms, and payroll systems are essential. Here’s what that risk looks like in the real world:
Story 1: The client shutdown spiral
A light industrial staffing firm in Ohio had over 50 temps placed at a single distribution center. A fire broke out on a weekend, halting operations. For two months, the client couldn’t reopen, and the staffing firm’s revenue from that account dropped to zero instantly. They weren’t protected because their business income policy didn’t extend to client losses, costing them over $100K in uninsurable lost income.
Story 2: Vendor failure at the worst time
A healthcare staffing firm relied on one payroll processor to cut checks for over 300 nurses across five states. That processor experienced a server outage due to a storm, freezing operations. Paychecks were delayed, nurses were furious, and a few walked off assignments. The firm burned internal resources managing damage control and suffered a major reputation hit. If they had contingent business income coverage, they would have been reimbursed for the lost income and extra costs associated with the outage.
Why it matters now more than ever
The world is more connected, outsourced, and dependent on third-party systems than ever before. However, when those connections fail, your bottom line doesn’t receive a warning; it just takes the hit. Contingent business income coverage allows you to regain back some control. It’s a way of saying: “We can’t control every variable—but we can protect against their consequences.”
If your revenue depends on systems and partners outside your walls, this coverage isn’t overkill. It’s a proactive approach to risk management—the “no blind spots” strategy that makes your business more resilient and scalable.
Be the leader who saw it coming
You’ve worked too hard to let someone else’s crisis become your company’s loss. Your team relies on your foresight, and your clients respect your professionalism. Contingent business income coverage is how you turn unpredictability into preparedness.
For a more detailed look at contingent business income coverage, please contact a Marsh McLennan Agency (MMA) advisor.
