What it does
BP 04 57 adds business income and extra expense coverage for the 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 the utility property checked in the Schedule – water supply, wastewater removal, communication supply or power supply property – with an entry for whether overhead transmission lines are included.
Key provisions
- Coverage is subject to Section I – Property except as the endorsement provides, including the business income waiting period.
- It does not cover business income or extra expense related to utility interruption that damages or corrupts electronic data.
- A Utility Services limit is shown in the Schedule.
Who needs it
Restaurants, hotels, salons, retailers and any operation that must close when power, water or sewer service stops. The base BOP business income coverage requires damage at the insured premises; this endorsement fills the off-premises utility gap.
Quoting and selling notes
- Ask how long the client could operate without power, water or internet and whether a generator is on site.
- Explain the waiting period and whether overhead lines (the most common cause of outages) are included.
Related forms
BP 04 56 Utility Services – Direct Damage.
