Fortunately, optional coverage is available to protect against utility service-related losses, and a business only needs to buy the type of coverage it needs, such as services for water, telephone/communications (either including or not including landlines), gas, and electric power. Commercial insureds also have the option to protect different classes of property, what business locations to insure, type of property (the firm’s property and property that belongs to others, such as customers), and the sources (perils) of loss covered.
Such coverage forms usually define the utility services; perhaps using language similar to the following:
- Water Supply Services are the pumping stations and water mains that supply the covered premises.
- Communication Supply Services refers to telephone, radio, microwave, or television services that are included as covered property, but coverage is not limited to only that property. The only specifically excluded communication property is a satellite. Overhead transmission lines may be included or excluded, depending on how the schedule is completed.
- Power Supply Services means five specific types of property used to supply electricity, steam, or gas to the scheduled property. The types of property are generating plants, switching stations, substations, transformers, and transmission lines. The transmission lines may be included or excluded, depending on how the schedule is completed.
If your business is concerned about its vulnerability to power-related loss, be sure to check with your Hertvik Insurance Group professional about this valuable coverage option.