Streetsmart insurance Blog
Whether you rely on electricity to use your computer or water to manage your equipment, your business depends on reliable utility services. If natural hazards (such as fire, wind, or hail) force you to close your doors, commercial property insurance and business interruption insurance will help you pay for your expenses. But if your utility services are interrupted, your current policy may not provide coverage. The off premises utility services interruption endorsement provides business owners with an additional layer of protection when disaster strikes.When your utility services shut down because of a covered peril on your insurance policy, the off premises utility services interruption endorsement will cover related property damage and lost income. Property damage limits typically range from $2,500 to $25,000, and business income limits have a waiting period of 12 to 72 hours to receive coverage. Talk with your insurance agent to find the right amount of coverage for your business.
How Can I Add Off Premises Utility Services Interruption Coverage To My Policy?
The off premises utility services interruption endorsement can be added to your commercial property insurance and business interruption insurance policies for additional coverage.
Utility Services – Direct Damage: When added to your commercial property insurance policy, this endorsement will protect your business from physical damage resulting from utility interruption. The damage must be caused by covered perils and the utility interruption must occur offsite.
Utility Services – Time Element: Although your business interruption insurance policy will cover your expenses in the event of an onsite disruption, it will not protect your business if your utility services are interrupted. This endorsement can be added to your business interruption insurance policy to pay for lost income and operating expenses after a disaster. The utility services – time element endorsement typically has a waiting period before you can receive coverage and a time limit to ensure that you resume operations as soon as possible.
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