Power surge caused by an indirect lightning strike may not be covered by a standard policy. That’s where equipment breakdown coverage comes in.
Most companies large and small depend on electrically powered equipment for some part of their business: air conditioning and refrigeration, computer systems and manufacturing equipment, for example. Lightning and the resulting power surge are a common threat. But you can protect your business by purchasing equipment breakdown coverage (EBC).
Investigating a lightning claim was not always a scientific process. Even a few years ago, insurance company reps would review whatever resources were available and determine if a thunderstorm had passed through the area on the day the loss occurred. If a storm could be verified, the loss claim was validated.
Today, thanks to weather satellites and the web, lightning strikes can be verified with pinpoint accuracy.
Why should this matter to you?
Lightning can strike at a considerable distance from your premises and ̶ through the electrical distribution lines that serve your building ̶ result in a power surge that damages your equipment just as a direct lightning strike would.
Because damage was not caused by a direct lightning strike to your premises, it may not be covered by your property policy. But when you purchase equipment breakdown coverage, you don’t need to worry; the damage caused by lightning, or lightning-related surge, is covered.
Be sure to speak to your local, independent agent about equipment breakdown coverage when you discuss insurance to protect your property and livelihood.
More information is available about the science of lightning and ways to protect your property:
- The National Weather Service dispels common myths about lightning.
- The Illinois Emergency Management Agency has a Lightning Safety Awareness Guidebook.
- Don’t let equipment breakdown ruin your day (for homeowners)
Coverages described here are in the most general terms and are subject to actual policy conditions and exclusions. For actual coverage wording, conditions and exclusions, refer to the policy or contact your independent agent.