Recent summer storms caused business owners in several states to close their doors because of power outages caused by strong winds downing power lines. Many were surprised that their business income insurance does not include coverage for this power interruption.
cover operating losses (also known as business income coverage) can be extended to include losses due to interruptions in public services. Services Utility-Time Element provides coverage for loss of income due to the interruption of energy, water supply, and communication. The owner of a company can choose coverage for all or part of these utilities. Power and communications have an additional option to include coverage for overhead transmission lines - which is what was required for those affected by power lines. This form pays loss of profit costs and continuing until the selected limit or until the service is restored
Some important points :.
- -Time Element Utility Services is an extension of the business income coverage can not be purchased by itself.
- Any period or deductible applicable waiting to business income will also apply to the extension of utility services.
- loss of the utility must be due to a covered cause of loss. For example, if the cause of loss selected form does not provide cover for the weight of ice, sleet or snow, an event caused by an ice storm would not be covered.
And did you know that coverage is also available for direct damage to property of the insured caused by the interruption of utility services (such as damage from a power surge)?
The companies that rely heavily on power, water or communications from a utility provider should talk to their agent regarding coverage for losses due to interruptions in supply of a public utility.
Have you lost power following storms? How did it affect your business?
The policy covers described above are in the most general terms and are subject to the exclusions and real political conditions. For specific coverage details and exclusions of the policy, refer to the policy itself or contact a central agent.
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