Some of the outage-related losses are covered by conventional business-interruption policies. Certain types of losses are commonly excluded, e.g.
In 2000, there was a legal test of the premise that computer data lost during power disruptions would be insured under business-interruption policies ("Policies Must Be Specific," Best's Review, October 2000).The case in question involved Ingram Micro Inc., which claimed that a 20-minute power disruption resulted in $4 million in lost profits.
can range from minimal coverage for re-startup costs to full losses sustained, including profit.
"In most business-interruption policies
, a certain number of days is usually considered to be a deductible, and coverage kicks in after a certain period.
Instead, many insureds appear to rely solely on their property insurance coverage for protection--a shortsighted approach, considering that most contingent business-interruption policies
provide very limited or no coverage for lost customers.