---
title: "Does Business Interruption Cover Power Outages?"
description: "Sometimes—a power outage may trigger coverage if a covered event causes it or a utility-services endorsement applies; an outage alone may not meet the physical-damage requirement."
canonical: "https://spot.insure/insurance-faq/business-interruption/does-business-interruption-cover-power-outages"
page-type: "faq-question"
updated-at: "2026-09-25"
---

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# Does Business Interruption Cover Power Outages?

Sometimes—a power outage may trigger coverage if a covered event causes it or a utility-services endorsement applies; an outage alone may not meet the physical-damage requirement.

Sometimes. A power outage may trigger coverage if a covered event causes it or a utility-services endorsement applies; an outage alone may not meet the physical-damage requirement. Standard business-income coverage may require covered physical damage, while a utility-services endorsement may extend protection when physical damage affects an off-premises power source. NAIC notes that such clauses can carry distance limits and exclude some perils; Texas guidance also warns some policies exclude power losses not caused by a covered event.

Read the utility-services and business-income forms together. Check whether power lines or generating equipment must be physically damaged, the covered territory and distance, waiting period, and limit. For refrigerated goods, separately confirm spoilage coverage and its trigger.

A business may also have a spoilage loss even when it can reopen quickly. Document the outage, its cause and duration, the affected utility equipment, and discarded stock, then compare those facts with each applicable endorsement before estimating a claim.

## Related Questions

- [What Is Business Interruption Insurance?](https://spot.insure/insurance-faq/business-interruption/what-is-business-interruption-insurance)
- [What Doesn’t Business Interruption Cover?](https://spot.insure/insurance-faq/business-interruption/what-business-interruption-does-not-cover)
- [Does Business Interruption Cover Lost Revenue?](https://spot.insure/insurance-faq/business-interruption/does-business-interruption-cover-lost-revenue)
- [Does Business Interruption Cover Payroll?](https://spot.insure/insurance-faq/business-interruption/does-business-interruption-cover-payroll)

## Related Coverage

- [Commercial property](https://spot.insure/coverage/commercial-property)

## Sources

1. [FAQ on business interruption insurance and other issues affecting California small businesses](https://www.insurance.ca.gov/01-consumers/140-catastrophes/FAQ-on-Business-Interruption-Insurance.cfm). California Department of Insurance; Business interruption trigger; COVID-19 income loss; policy exclusions; civil authority. Accessed 2026-09-25.
2. [What Business Income Loss Coverages Are Out There? Learn the Endorsements That Can Help with Lost Business Income](https://content.naic.org/article/small-business-insight-what-business-income-loss-coverages-are-out-there-learn-endorsements-can-help-lost-business-income). National Association of Insurance Commissioners; Top Considerations; Things You Should Know: business income, extra expense, service interruption, contingent business interruption, civil authority. Accessed 2026-09-25.
3. [What insurance do I need to run a business from home?](https://agate.tdi.texas.gov/tips/what-insurance-do-i-need-to-run-a-business-from-home.html). Texas Department of Insurance; Add coverage for business-related losses; Consider business interruption coverage. Accessed 2026-09-25.

More answers: [Business Interruption Insurance FAQ](https://spot.insure/insurance-faq/business-interruption).

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