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Power cuts in businesses: is the loss of perishable goods covered by insurers?

Published on January 05, 2023 by Pierre Belhache - 3 mins reading time
Professional Companies Electricity

Many businesses are concerned that a power cut this winter could render perishable goods unusable. This risk particularly concerns food stores and restaurants, most of which will not be covered by their insurers should this happen. Here's a closer look at insurance policies and what they cover in the event of a power cut.

Worrying about long power cuts

Financial losses, staff management, reception of the public, technical problems... companies are worried about possible power cuts in the coming weeks.

Restaurants are directly impacted, as a break in the cold chain could render their food products unusable and jeopardize the continuity of their business. Indeed, many will not be compensated by their insurers in the event of loss of perishable foodstuffs.

So, while industry players will be able to organize themselves in the event of short, planned outages, longer outages will pose other problems, especially as the cost of energy has soared in recent months.

Reading your insurance contract

To find out whether they are covered in the event of loss of perishable foodstuffs due to load shedding on the power grid, companies need to reread their insurance policy carefully, and in particular the clause on accidental events. This type of cover may be included in specific or standard clauses, depending on the insurer. However, it may be associated with exclusions. Some companies, for example, make coverage conditional on the occurrence of an event causing the loss of perishable goods. However, a power cut decided by the supplier does not necessarily constitute a hazard.

Generally speaking, large companies are effectively covered in this situation. Compensation is also provided for ancillary costs associated with business interruption. On the other hand, SMEs and professionals do not always have systematic access to this coverage.

Last-minute insurance

The risk of load shedding is now well known. To find last-minute cover, professionals will need to focus on covering a specific risk. If they wish to avoid having to pay the full price, they will be well advised to use the competition, if necessary by using an online comparator.

In addition to coverage and exclusions, managers should pay particular attention to indemnity periods, which can vary considerably from one insurer to another, as well as to coverage limits and deductibles. To save time, it may be a good idea to use the services of a broker, who will compare the offers available on the market. Thanks to its extensive network of partners, this intermediary can negotiate cover at a particularly advantageous rate.