Hurricanes and Windstorm Coverage



...other pharmaceuticals, fruits, meats, miscellaneous foods and beverages, etc., need to be protected in case of a failure to maintain required refrigeration, cooling or humidity levels. These are common losses resulting from windstorms, especially if there is not a generator or other backup equipment in immediate operation to help protect perishable inventories.

Utility Service Interruption

Service interruption and off‑premises power failure coverage

Windstorms make businesses highly vulnerable to utility service interruption losses such as electricity, gas, water and telecommunications. Vulnerable businesses may be able to buy insurance coverage for losses resulting from this “service interruption” or “off-premises power failure.” The service interruption must result from a covered peril. Be aware that some...

Case Study:

A grocery store lost power for six days after a major windstorm near the coast of Georgia. Due to the loss of power, all refrigerated goods on the premises spoiled and had to be disposed of. The spoilage endorsement allowed for all stock losses to be reimbursed. In addition, the business interruption insurance and extra expense coverage were triggered to pay for the lost business and additional shipping costs while the grocery store restocked their inventory.

Case Study:

A motel on the coast suffered a major power outage due to severe damage at the local power plant, and the power was out for two weeks. Their service interruption coverage had a 72-hour deductible, which triggered the business interruption coverage after three days without electrical power. The motel was able to collect for the lost business due to the power outage on all collectible days until the power returned.