Business Interruption Insurance - Water Supply Shortage - Macbeths Insurance Broker

Ensure you have Both Ends Covered

Check that your Business Interruption cover applies to damage occurring at any point in the supply line rather than just at land based premises of the supply authority. 

After the ‘Beast from the East’ combined with Storm Emma, the nation is starting to return to normal operations. As freezing conditions give way to the thaw, we’re seeing a large number of burst water pipes. Large areas of the country are being urged to use as little water as possible. Properties and businesses in the London and the South East have faced severe disruption, as have most other areas across the county.

Big businesses have been impacted by the water shortage, including Cadbury’s and Jaguar Landrover. Water companies, including Thames Water, Seven Trent and Welsh Water all advise to limit use of water to only essential needs. Some suppliers have warned that the thaw could also cause ground movement that could further damage infrastructure.

Business Interruption Cover

Businesses affected by the recent lack of water should consider whether this would be included under a Business Interruption cover, which will protect them against loss of profit resulting from various situations occurring at their own property.

But what happens when the damage occurs away from your premises?

In situations such as lack of water due to a burst water main away from their premises, there has to be a Failure of Public Utilities extension on the BI cover, and more importantly this must include the terminal feed to the insured premises, also known as “both ends cover”.

When both of these are in place, if a business cannot open or otherwise operate due to lack of water, the Business Interruption cover would respond and cover any loss of profit resulting from this scenario.

To discuss your Business Interruption insurance cover options, or to obtain a quote, call us now on 0118 916 5480 or email us.



Author: Tony Gibbs | March 6th, 2018

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Tony Gibbs
Get in touch:   Reading: 0118 916 5480   London: 020 7036 8767