You know the drill. A big storm blows through. Utility services, including power, are disrupted for a short while. Services are restored. Business goes on.
But sometimes utilities are out for long periods. For example, many areas across the Southeast devastated by Hurricane Michael were without power for weeks, causing some businesses to close indefinitely and others to shutter permanently.
Many of those businesses could have reduced the impact of the power outage—and possibly have stayed in business—if their property insurance had business income protection that included “service interruption” as a covered event.
It’s important to note that such coverage may be available only if the power outage is caused by an event that would be covered by the business’s insurance policy, such as wind or fire damage to a utility pole. If the outage is triggered by an uncovered event, such as flood damage to a gas line or line maintenance, coverage would not apply.
Keep in mind that your business can be affected by damage done to utilities even if your place of operation experiences no direct damage. Make sure the coverage you secure accounts for such a situation.