If your business has lost power during Hurricane/Tropical Storm Harvey, you aren'talone: Power and utility companies in Texas reported up to aquarter million customers have gone without electricity at somepoint as a result of the storm, with several thousand homes andbusinesses still without power as of Tuesday morning.

And with extensive flooding likely to hamper repair and recoveryefforts, long-term interruptions are likely for many businesses.Here's how you can limit the effect on your operations and bottomline:

Policy service interruption-related requirements

It's vital for businesses to execute their business continuity plans and takeemergency measures to address power loss — for example, making useof batteries and backup generators if safe to do so, and ensuringthe safety of employees through evacuation plans, contingency workplans, and other means. But it's also important to understandany service interruption-related requirements in yourinsurance policy.

Your property insurance policy may provide coverage in the eventof an extended power outage — which could be 24 hours or more,although this varies by policy. Coverage may include:

  • Service interruption property damage: Costsassociated with damage to property arising from loss of a utility(for example, damage to temperature-sensitive property as a resultof refrigeration being lost).
  • Service interruption time element: Lossesdirectly arising from extra expense or business interruption.

In addition to power loss, other covered service interruptionscould include gas, water, garbage removal, and telecomservices.

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