When severe weather, natural disasters, or an accident occurs, the end result can be a loss of utilities that impacts many business in the area. While your business might be protected through Commercial Insurance from some kinds of property damage or losses, you might not have the coverage you need if you lose utility services for a period of time, or if the utility outage causes damage to your business property. In today's Aegis blog post, we discuss important factors to consider if you want to know if your business has the proper coverage against utility outage losses.

Not Covered By Standard Business Interruption Insurance

Many businesses elect to have Business Interruption Insurance, which offers financial protection when a business closes due to direct physical losses or property damages from a covered event, such as an on-site fire or wind damage. Unfortunately, many business owners don't realize that when fires, hurricanes, or tornadoes damage power lines or utilities that are not on their property, most standard business interruption policies will not cover those interruptions or losses.

Time Element Utility Disruption

In order to have some form of financial protection in the event of utility outages, business owners can choose two Utility Interruption endorsements to add to their existing coverage. The first is called Time Element Utility Disruption, which is when utility sources or providers are damaged off site and force your business to be shut down for a period of time. Time Element Utility Disruption endorsements are an extension of basic Business Interruption coverage.

Direct Damage Utility Disruption

The second kind of Utility Interruption endorsement is known as Direct Damage Utility Disruption, which is when utility outages occurring offsite directly damage your business property. For example, if your business equipment or computers are damaged by a power surge caused when power is restored from an offsite outage, a Direct Damage Utility Disruption endorsement could cover those losses. This type of endorsement is an extension of your Commercial Property Insurance.

If you're not sure if your business has the right kind of coverage for utility-related losses or interruptions, contact the Commercial Insurance experts at Aegis Insurance & Financial Services. Our team can help you assess your current insurance gaps and goals, and help develop a strategic insurance plan that meets your specific business needs while protecting what matters most. Contact the Aegis team at 713-850-7622 for more information, or fill out our online form to request a free quote!