Does Business Interruption Cover Utilities?
Sometimes—continuing utility bills may be part of a covered income loss; an outage that causes the shutdown may require a service-interruption endorsement with physical-damage terms and distance limits.
But an outage that itself stops operations raises a separate trigger question. NAIC guidance says service-interruption clauses may cover direct physical damage to utility services and transmission equipment, often with distance limits and peril exclusions. Those provisions may be optional or endorsement-based.
Check whether the policy requires damage at your premises or extends to a utility supplier’s property. Review covered services, distance radius, causes of loss, waiting period, and any separate income or extra-expense sublimit. Ask whether the utility must be named and whether a power interruption without physical damage qualifies.
