If you're a Texas retail owner, you know that unpredictable weather can hit at any time and cause unexpected utility outages. When this happens, it can result in significant losses and business interruptions, especially for retail businesses.
To mitigate the impact of utility outages, Utility Interruption Insurance can provide the financial help you'll need to make a full recovery. Learn what Utility Interruption Insurance is, why it's essential for your retail business, and how Aegis helps protect companies by offering great policy options.
What is Utility Interruption Insurance?
Utility Interruption Insurance is a type of Commercial Insurance that covers your business in the event of a major power outage or other utility interruption. If your business loses a critical utility because of offsite damage caused by a covered event (such as fire or lightning strikes), your business could suffer catastrophic losses because of equipment damage, spoiled inventory, or lost revenue.
All types of retailers and industries can benefit from Utility Interruption coverage, including:
- Grocery stores
- Pharmacies
- Restaurants and delis
- Souvenir shops
- Clothing stores
- Florists
- Bakeries
This policy gives your retail business the financial resources needed to make a quick, complete recovery, whether your business is closed for a couple of days or a few weeks. Utility Interruption Insurance can be the difference between a brief closure and reopening versus a complete business shutdown.
How Does Utility Interruption Insurance Work?
Utility Interruption policies typically provide coverage for lost revenue and unexpected expenses incurred during the length of the utility disruption. In order for your business to make a claim, the damage that caused the utility disruption has to have occured off your business premises, such as a tree knocking down power lines down your street, a fire at a power substation, or a failure at a water treatment facility.
After a brief waiting period, usually between 24 and 72 hours, your coverage kicks in and continues until power is fully restored. The policy's coverage limits will depend on your business's size and the level of coverage you choose.
Why is Utility Interruption Insurance Essential for Texas Retailers?
Retail businesses in Texas are especially vulnerable to utility outages due to extreme weather conditions such as hurricanes, tornadoes, lightning strikes, and ice storms. A long period of time without essential utilities can add up to significant losses, and without insurance protection, it could take months to recover financially.
Besides the losses that could come from ruined inventory, damaged equipment, and missed income opportunities, a lengthy closure also impacts other areas of your business, such as covering payroll, paying rent and bills, and paying taxes. Utility Interruption Insurance gives you the financial help needed to offset your equipment, inventory, and income losses so you can focus your other financial resources on your other urgent bills and expenses.
Aegis Supports Retailers with Quality Insurance Solutions
Utility Interruption Insurance is an important coverage to have for any retail businesses in Texas. With this coverage, you can have peace of mind knowing that your business is protected in the event of a utility interruption.
If you don't have this coverage yet, call the Commercial Insurance team of Aegis Insurance & Financial Services at 713-850-7622 to learn more. You can also request a free quote by completing our online form, and our agents will be happy to provide you with additional information.