If your property location had no access to water, electricity, phone or internet…could your business still operate?
When most businesses purchase a new insurance policy, or renew their current coverage, they are planning for the worst case scenario. They are looking to protect their property in the event of a fire, wind/hail damage, vandalism, etc. They may even make sure they carry Business Interruption coverage, in case the damage to the property is so severe that the operations must shut down. However, these coverages will not protect you in the event that your business operations were to cease due to utility outages.
Utility Service Interruption Coverage, also known as Off-Premises Power Coverage, has 2 fundamental parts to protect your business and can be added by endorsement to most Commercial Property Policies.
Utility Services – Direct Damage: This endorsement becomes an extension of your property policy. This coverage would respond if damage occurred to your property due to an interruption of any utility services, such as a power surge damaging your covered property.
Utility Services – Time Element: This coverage enhancement protects your loss of income due to an interruption of any utility services for the specified period of time stated within the endorsement. For example, if a hotel were without power and ended up having to relocate a wedding and cancel all hotel bookings this coverage would respond for the expense of moving the event as well as the loss of income from the rooms.
Depending upon your business, this type of loss could be detrimental to your company. Click on the following link for additional information and statistical data. http://www.thehartford.com/business-income-insurance
We highly recommend purchasing both of the above coverages as well as make sure in includes Overhead Transmission Lines coverage, which will protect you in the event a power outage occurs off premises due to fallen power lines. We encourage you to discuss with your current agent, or contact us here at Henry M. Murray Agency, Inc. and we will gladly assist you in making sure you are properly covered.