Power Surge Claim

August 6, 2012

Insured had a laser machine inspected, and the error messages that appeared stated it was damaged by a power surge. There had been a storm that caused a loss of power, and the ensuing surge damaged the machine. But for the windstorm there would not have been a power failure or surge. We understand that there is no coverage for power surge or failure, but would proximate cause pick it up?

Florida Subscriber

On the ISO CP 10 30, the exclusion for power surge falls under the anti-concurrent causation wording, which states, “Such loss or damage is excluded regardless of any other cause or event that contributes concurrently or in any sequence to the loss.” So, the loss you describe would not be covered.