Off Premises Utility Services Coverage –
What is it and why do I need it?
What if you have to suspend or shut down your business operations due to the direct physical loss of power, communication or water services? If your business is without natural gas, phone, internet or water for more than a day or so, your business can really suffer. A standard commercial property and business interruption insurance policy provides reimbursement for loss due to business interruption caused by damage to the insured premises, but what if your operations are suspended as a result of a loss not on your premises, such as a downed power or phone line, blown transformer or broken water pipes several miles away from your location. There is no direct damage to the insured property so most commercial property policies will not provide for loss of income for this type of situation. That’s when Off Premises Utility Services Coverage becomes so important.
The utility must be out due to a covered cause of loss (as defined in your policy) such as fire, wind, lightning, vehicle damage, etc.
Water – Water mains and pumping stations that supply water to your location.
Communication – Internet, telephone, radio, television.
Power – Transformers, transmission lines to supply electricity and gas to your location.
This endorsement is critical in order to be fully protected.
If you are interested in learning more about this coverage, please contact your Rue Insurance service representative at 1-800-272-4RUE.