Utility and business interruption insurance

Are you prepared if outside forces interrupt your business and cause you to close your doors for a period of time? If your business is without natural gas, phone, connectivity or water for more than a day, business interruption insurance and utility interruption insurance can offer your business the protection it needs.

What business interruption insurance covers

Business interruption insurance can keep capital flowing in the event of disruptions such as fire, hail, wind storm, vandalism or equipment damage. It can help you:

• Keep your business afloat if a loss forces you to close for a short time
• Pay for lost net income and continuing expenses such as mortgage, advertising, taxes and salaries
• Pay your relocation and advertising fees if you set up shop at a temporary site
• Maintain business continuity

How utility interruption insurance offers extra protection

Commercial property insurance and business interruption insurance cover your costs if an unexpected event damages your property and forces you to close for a short time. However, they don't cover losses your business sustains from a utility interruption, which can result from events occurring off your premises, such as a wind storm, water main break or gas leak.

Basic business interruption insurance and property insurance can be expanded to include this coverage with two specific endorsements:

• Utility services – time element: This endorsement is an extension of basic business interruption insurance. In the event winds break down a power line or a water main is broken, this coverage can cover your losses, including loss of income and expenses, up to a predetermined time limit or until the power or water service is restored.
• Utility services – direct damage: This endorsement is an extension of your property insurance, providing protection against damage to your property resulting from an interruption of any of the utility services named in the policy as a result of a covered cause, such as a windstorm.

Be sure to download our free disaster planning toolkit (PDF) so you can better prepare your business for an emergency.