What it does
BP 04 56 pays for loss of or damage to the Covered Property described in its Schedule caused by interruption of utility service to the described premises. The interruption must result from direct physical loss or damage by a Covered Cause of Loss to utility property located away from the insured building – water supply, communication supply or power supply property, as checked in the Schedule. For power and communication, the Schedule also states whether overhead transmission lines are included.
Who needs it
Accounts whose property is damaged by an outage itself: frozen pipes or spoiled inventory after a grid failure, damaged equipment after a surge from an off-premises event.
Key provisions
- A separate Utility Services limit applies; the Section I deductible applies unless the endorsement says otherwise.
- Selecting overhead lines broadens the exposure considerably and is priced accordingly.
Quoting and selling notes
- Pair with BP 04 57 for income loss during the outage.
- Spoilage of refrigerated stock from power outage can instead be handled under BP 04 15 with the Power Outage option.
Related forms
BP 04 57 Utility Services – Time Element; BP 04 15 Spoilage.
