What it does
CP 15 45 extends the Business Income and/or Extra Expense coverage in CP 00 30, CP 00 32 or CP 00 50. It covers a "suspension" of "operations" at the described premises caused by interruption of utility service. The interruption must result from direct physical loss by a Covered Cause of Loss to the utility property selected in the Schedule:
- Water Supply Property: pumping stations and water mains.
- Wastewater Removal Property: sewer mains, pumping stations and treatment facilities, but not storm-water systems. Interruptions from discharge due to heavy rainfall or flooding are not covered.
- Communication Supply Property, with or without overhead transmission lines.
- Power Supply Property, with or without overhead transmission lines.
Key provisions
- An optional Business Income waiting period in hours starts at the time of the utility interruption. Extra Expense starts immediately.
- Coverage lasts until operations are fully resumed or could be resumed with reasonable speed after service is restored, whichever is first. The policy's normal period-of-restoration definition does not apply, and policy expiration does not cut coverage short.
- Losses tied to damage to electronic data are not covered.
- A separate Utility Services limit is shown in the Schedule.
Quoting and selling notes
- Most widespread outages start with storm damage to overhead lines. Choose the "including overhead transmission lines" option or the coverage may not respond.
- Explain that the utility's property must suffer physical damage from a covered peril. Rolling blackouts or planned shutoffs without physical damage are not covered.
- Pair it with CP 04 17 for direct damage (spoiled stock, equipment damage).
