Some of the outage-related losses are covered by conventional business-interruption policies.
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).
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.