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Losses From Power Failures

Is insurance coverage available to protect my business from losses caused by power failures like the one we just experienced in the Northeast?

In general, basic commercial property insurance does not cover loss due to failure of power or other utility service to the described premises if the failure occurs away from the premises. Coverage may be provided only if the failure occurs at the insured location.

Many insurance companies offer this coverage either as part of a Package Program or through an additional rider or endorsement. This insurance covers two different possibilities. One relates to direct physical damage to property such as computer equipment, and the other relates to loss of earnings or extra expense (also known as business interruption) caused by the power failure. All losses must be carefully documented through your organization’s business records.

It is important to point out that every insurance contract is different. It is critical to read and understand the insurance policy with regard to what the coverage provides and what is specifically excluded. A professional insurance agent is usually the best source of information and guidance for this complicated and critical insurance coverage.

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Anchor Agency, Inc.
Pioneer Plaza
652 Albany Shaker Road
Albany, NY 12211

Phone - 518.730.3200
Fax - 518.730.3199
Email -
The Hartford