Let’s take a look at a sample Public Utilities clause (emphasis mine): Just search for “Public Utilities” – if it’s in the wording, then you’ll have the coverage. Look for a clause that is similar to the one below in your policy wording. Your business interruption policy wording should have a “Public Utilities” clause, which states that business interruption coverage applies in the event of a failure of utility services to your company. What should I look for if I want business interruption insurance for power outages? This article will help to explain the specific scenarios where your business interruption cover will kick in to cover you against losses suffered from power outages. If you feel it’s important for you to have coverage for power outages, then make sure you read through your policy wording to ensure that this coverage term is included.īusiness interruption coverage for power outages can get complicated. Some insurers won’t include this as an automatic cover, and may require you to specifically request for it, with additional premiums payable. Some insurers in Singapore will automatically cover business losses caused by power outages. ![]() If your business suffers a power outage because the utility company was conducting routine maintenance, or because the government ordered the utility firm to shut down for safety reasons, then ordinarily, you will not be covered for business interruption losses.Īlso, coverage will depend on the specific wording of your business interruption policy. ![]() This means that the power generation plant must suffer physical damage, such as from a fire, flood, explosion, or other causes. Most business interruption policies will only cover power outages caused by utility companies suffering some kind of property damage at their power generation facilities. The quick answer is yes, but it’s important to identify the cause of the power outage to ensure that coverage will apply. A common question that business owners have is whether their business interruption insurance will cover power outages.
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