Well hardly…but it did get us thinking in the office.
Shortly after the power cut happened (apparently caused by a tractor colliding with an electricity pylon) the Grantham Journal reported that 13,000 properties were affected and we noticed a number of shops in Grantham closed their doors.
In this instance, it really wasn’t a big deal. A couple of hours for an impromptu siesta for some and an excuse to get that filing done for others. But what if it wasn’t just a couple of hours? What if it had lasted all day, or for a couple of days?
Interestingly, most insurance policies have a clause that deals with this incident specifically. I’ll use the “Allianz Complete Retailer” wording as an example:
“10 Failure of Supply
Loss as insured by this Section resulting from interruption of or interference with the Business in consequence of accidental failure of supply of
- i) electricity at the terminal ends of the service provider’s feeders at the Premises subject to a limit of £25,000…”
It goes on:
- b) the Insurer shall not be liable for any Business Interruption
- i) which does not involve a cessation of supply for at least 4 consecutive hours in respect of the supply of electricity…”
The upshot of the above clause means that following a failure of supply of more than 4 consecutive hours could be claimed for under this policy. There is, of course, the question of whether the mark against your claims history would make a claim a sensible option and each case would need to be taken on its merit.
All of this is without mentioning the potential deterioration of refrigerated or heated stock and the insurance implications therefrom.
If you would like more advice about your insurance arrangements or wish to undertake a review, please contact me in the office. firstname.lastname@example.org or 07908 555648