Many residents and businesses on the East Coast found themselves without power following Superstorm Sandy. While some had power restored the next day, others were without power for days upon days. The disruption in utility service was mainly caused from downed power lines, broken trees, and flooding.
While millions of residents were affected by the loss of power, thousands of business owners in Virginia and throughout the northeast region found it impossible to run their companies without power. When a company doesn’t have power, it prevents that business from operating.
What Do Business Insurance Policies Say About Loss of Power?
Policyholders need to turn to their insurance policies to determine if they have utility service coverage that would help them recover for losses they incurred during Sandy. Some commercial property insurance policies will include provisions stating that there is coverage for a company’s inability to operate because it did not have power. Under these policies, business owners should be able to claim “service interruption” due to power outages and recover losses arising from an interruption of utility services.
However, if the loss of power was due to equipment failure on a company’s own premises, there is no coverage. Additionally, some commercial policies will exclude service interruption coverage or power outage coverage altogether that originated offsite from the insured’s premises.
Commercial insurance policies can be hard to understand because each policy has specific language and different provisions and exclusions; it can be difficult to decipher what’s covered and what isn’t. A skilled commercial insurance claim attorney can help businesses in Virginia determine if they have business interruption coverage and how they can best collect business losses following Sandy. For help submitting a successful claim, contact a commercial insurance attorney at the Voss Law Firm 888-614-7730 to receive a free consultation and a free copy of our book Commercial Insurance Claims: The Basics.