As New York City residents and business owners recover from the weekend’s blackout due to an Electric Transformer Fire, we are reminded of the blackout of 2003 where many were scrambling to get out of Manhattan by walking over bridges and seeking car rides from friends, coworkers, and strangers. Businesses were impacted with downed lines and when these establishments couldn’t use electricity to cook their food, the number one priority was to first responders including ConEd, FDNY, EMT, and NYPD.
How do you Recover When Your Business Can’t Operate because of Property Damage?
A blackout can cause significant damages to local businesses and many wonder if their insurance policy will cover the business interruption. For restaurants and supermarkets, the loss of power can lead to food spoilage which could range from 25k (Weekend Food Loss) to millions (Large supermarket with refrigerated equipment).
Business Interruption Insurance (also called Business Income and Extra Expense Insurance) is part of a Business Owner’s Policy (BOP) and covers lost income if you need to temporarily close your business due to events beyond your control such as a blackout. Typically, a Business Interruption Policy can provide coverage for:
- Rent or lease payments
- Employee wages
- Loan payments
- Losses caused by damage that prevents access to a building
Appropriate coverage is key to protecting your assets but even more important is an understanding of the policy. Insurance policy language can be complex. In the example of business interruption, policyholders must be wary of tricky terminology within these items: Waiting period, Proof of loss and Unique coverages.
Public insurance adjusters are a key resource to implement in situations such as a blackout. United Public Adjusters & Appraisers Inc. is skilled to manage the complexity of property insurance claims. Our keen understanding of policy language and its interpretation as well as construction and real-estate knowledge along with management of over $100 million in claims such as business interruption, places us as an industry expert; ready to advocate on your behalf!
We aim to recover maximum funds in the least amount of time possible. We take the stress of insurance recovery off of your shoulders by managing the entire property insurance claim process, so that you can focus on operations. If you or someone you know has a Food Loss or Business Interruption claim from the power loss, contact United Public Adjusters & Appraisers, Inc. at 1-800-718-5677