What it does
The Causes of Loss forms exclude loss caused by failure of power, communication or water service originating away from the premises. CP 04 17 gives back coverage for loss or damage to Covered Property caused by an interruption of utility service to the described premises. The interruption must result from direct physical loss by a Covered Cause of Loss to utility property selected in the Schedule:
- Water Supply Services: pumping stations and water mains.
- Communication Supply Services: transmission lines, including optic fiber, coaxial cables, and microwave relays other than satellites.
- Power Supply Services: generating plants, switching stations, substations, transformers and transmission lines supplying electricity, steam or gas.
Overhead transmission lines are covered only if the "including overhead transmission lines" option is selected. Most utility outages from storms involve overhead lines, so this choice matters.
Key provisions
- A separate Causes of Loss form can be named for each utility in the Schedule.
- Any Utility Services limit shown is part of, not in addition to, the limit on the covered property. With no limit shown, the property limit applies.
- Damage to electronic data is not covered.
Quoting and selling notes
- Pair it with CP 15 45 (Utility Services – Time Element) for lost income during the outage. The direct damage form covers only property damage, such as spoiled stock or damaged equipment.
- For refrigerated goods, compare with Spoilage Coverage (CP 04 40), which can cover power outage on or off premises without requiring damage to utility property.
- Ask whether the client has backup generation and how long outages typically last in the area.
