This February, Texas residents and businesses across the state were caught off-guard when a devastating winter storm caused a major disruption on our state's electrical grid, causing millions to go without power for nearly a week. Although the freeze and widespread power outages caused millions of dollars in losses and damages, the reality is that Texas could continue experiencing severe utility outages like this, but in the summer months when the power grid is tested during the extreme heat and drought forecasted for this summer.
For business owners, the important question to consider is if your business is protected from power or other utility outages this summer? Could your business survive losing power for a week? Would you just lose revenue, or would you also lose raw materials and merchandise as well? Can you cover those losses out of pocket? In today's Aegis blog post, we discuss the true impact of utility outages this summer, as well as ways to ensure your business has financial protection in the event of widespread utility disruptions.
Loss of Revenue and Customers
Businesses are finally on the rebound after a challenging year of Covid-related issues, but it doesn't mean that companies aren't still vulnerable to other kinds of disasters or major losses. Utility disruptions are some of the most challenging issues for businesses because they can strike at any time without warning, and businesses are at the mercy of utility companies to restore service and allow their business to operate again. With companies desperate to fill staffing gaps and welcome back customers, a lengthy utility-related closure is the last thing businesses need.
Loss of Property and Materials
Additionally, companies can experience a substantial financial loss due to utility disruptions because of the materials and inventory lost. For example, a restaurant or bakery can lose all of their refrigerated and frozen ingredients and inventory due to a power loss, and would be forced to stay closed until they could have power restored and also replace all spoiled food and ingredients. The loss of revenue coupled with the loss of company goods and materials would likely be too much for restaurants, bakeries, or other food-service companies to recover from without some sort of financial protection to aid with recovery.
How Commercial Insurance Can Help
Commercial Insurance policies can help protect companies that are particularly vulnerable to lengthy utility disruptions, such as retailers, restaurants, and other goods and service providers that rely on steady utility services to perform their job and earn revenue. For example, Utility Services Interruption Coverage can be a huge financial relief for companies that are directly impacted by utility disruptions covered by covered events, including business income losses (Time Element) or damaged or lost commercial property (Direct Damage). In addition, Commercial Property Insurance can help cover the cost of repairing or replacing damaged commercial property due to a covered event, such as the building structure, signage, equipment, and other assets.
Aegis Insurance & Financial Services is proud to partner with companies and industries to provide best-in-class commercial insurance solutions that meet company needs at competitive rates. Our level of insurance protection allows company owners to have financial peace of mind and lets them focus on growing their business and increasing revenue. Contact our Aegis team at 713-850-7622 to find out more or to request a free quote!