Ice Ice Maybe

Property & CasualtyIf you are like me, sometimes you get a song in your head and it follows you around all day. My high-school-aged son plays drums and the bass guitar and he has been banging out Ice Ice Baby by Vanilla Ice all week. Listening to it gave me my blog idea of the week. Winter is coming and the Ice Ice (and snow) that comes with it can interrupt the power to your business, resulting in spoilage of perishables, freezing of water pipes due to lack of heat and interrupt your business plan for days or weeks. How does your current insurance coverage deal with Ice Ice Maybe?

Ice storms and snow storms, even those that drop as little as a 1/4 inch of ice or a few inches of snow can cause tree limbs to fall and strike power lines, resulting in power interruption.

Many commercial insurance property policies will cover power interruption caused by Ice or snow, if the┬ádirect damage caused by these elements happens on your premises. When you look at the definition of your premises/location on commercial property policies, it is very restrictive. As little as within 100 ft. of your premises location up to 1000 ft. of that location is all the area of coverage you will find on most commercial property policies. So, if the power outage caused by ice or snow snapping a power line doesn’t happen within a number of feet of your locations listed on the policy, you will have no coverage for the direct and indirect damage caused by the outage. Most Ice and snow power outages start on someone else’s premises as luck would have it.

Fortunately, with no luck involved, there are insurance solutions for the interruption of your business operations caused by Ice Ice and snow, resulting in power outages that originate off premises but interrupt your power on premises. It is called Utility Services Direct Damage and Time Element (Business Interruption) coverage. You select a limit for both direct damage and for lost business income or S combined limit for both. You can even include coverage for the interruption of power, water supply and communication.

For businesses that have spoilage of food, medicine or other items requiring refrigeration, coverage for this type of damage and lost income associated with this direct damage can also be purchased.

Long before Ice Ice Maybe hits your business, interrupting your power and other utilities, let AssuredPartners NL Property & Casualty review your current coverage to help you avoid the surprise of no coverage when the lights and heat are out.

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