Is Your Business Covered Against a Utility Service Failure?

For any business, a utility service interruption, such as a power outage or loss of water supply, can mean more than just business downtime. It means loss of income and productivity for however long the outage occurs. These incidents can result in spoiled goods or wreak havoc on a business’s finances.

Even during those unknown moments where the power is out, the water isn’t running and the gas is off, a time element utility service endorsement can help your business prosper.

What is a Utility Service Endorsement?

A Utility Service Endorsement is an optional coverage that can be added to a standard business insurance policy. It can help cover the cost of lost revenue due to a covered cause of loss. Examples could include incoming utility services, such as phone lines, gas, water, or electricity.

With the endorsement, a covered cause of loss triggers the business income coverage. This includes items such as continuing expenses (ex: insurance or rent) as well as lost profits due to the utility service interruption.

How does this additional coverage work?

Let’s say you own a small, local restaurant. After a winter storm causes utility service power failure, your freezer and refrigerators shut down. This causes all the food stocked to spoil. On top of that, your business’s phone and the internet is not working. You now keep your business closed until the phone line and internet is operating again. With a time element utility service endorsement, your claim can include the income lost from your business closer. Otherwise, you would have to eat the costs of that loss.


There are different variations to this type of business insurance endorsement, including what utility services are covered and the timeframe of events, so make sure you know what all is covered in your endorsement by speaking with your Hertvik Insurance Agent.