If the electric utilities flip the switch on you, you stand to lose and to lose big. That s the bad news. The good news is that you already may have insurance to cover your losses. Your property insurance, specifically your business interruption insurance, should provide coverage. Your Loss Property policies can cover policyholders for damages suffered as a result of damage to both tangible and intangible property.
Tangible property runs the gamut from items in production to inventory to business records.
Intangible property includes anticipated profits and income. Under most property policies, the insurance company promises to pay for financial loss caused by direct physical damage to insured property or loss of use of insured property. Most property policies cover losses to inventory that businesses suffer as a result of power interruptions. One specific type of property insurance likely to afford coverage to businesses affected by power interruptions is Business Interruption insurance. Business Interruption, or BI, insurance is designed to protect policyholders who have to suspend their business or production, resulting in lost sales and loss of profits.