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No Power, No Internet, No Phones – Now what????

September 18, 2013
Adam Winters Commercial Lines Account Manager Founders Insurance Group

Adam Winters
Commercial Lines Account Manager
Founders Insurance Group

Utility Service Interruption Coverage. This is one of those things that you don’t think about until a Nor’easter or Hurricane plows through and your business doesn’t have power for a week. In New England – we are famous for both those weather scenarios.

Here’s the scoop on why you should have it:

Utility Service Interruption Coverage kicks in for a loss due to lack of incoming utilities (i.e. Power, Water, Communication) caused by damage from a covered cause (peril) to the utility supply away from the insured’s premises (property) – usually the utility generation station. This is also referred to as “off-premises power coverage.”

This is NOT part of your basic property coverage, it must be endorsed! But wait – there is some fine print. Utility service interruption coverage endorsements vary widely by carrier as to what utility services are included, whether both direct damage and time element loss are covered and whether transmission lines are covered.

Utilities can be: Electricity, Water, Cable, Telephone and Internethurricane

Before you ask – here’s what that fine print means: You need to have a candid conversation with your agent about your business. What will happen if you don’t have power, telephone or internet for a week – how will it affect your business and your income?

What does direct damage and time element loss coverage mean? These are sublimits of the Utility Service Interruption coverage. You will need to estimate the cost of the damage caused to your contents due to service interruption. Time element coverage is for a loss resulting from the inability to put damaged property to its normal use. The amount of loss depends on HOW LONG it takes to repair or replace the damaged property.

Insurance is complicated –which is why using an independent insurance agent is key. At Founders Insurance Group, we have access to the top carriers in our area and have a team with decades of experience. We will hold your hand through the process.

Take a hard look at your business – where are the weaknesses? What can’t you control and what can you? Insurance is there to protect you when things go awry, and so are we!  Give us a call 860-482-3506  or check us out online


Adam Winters

Commercial Lines Account Manager

Founders Insurance Group

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