Lightning, Power Surge? EBC Can Protect Your Property

Power surge caused by an indirect lightning strike may not be covered by a standard policy.

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.

Lightning Claims

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 advancing technology, lightning strikes can be verified with pinpoint accuracy.

Why is this important?

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 (EBC), 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

• The National Weather Service dispels common myths about lightning
• The Illinois Emergency Management Agency Lightning Safety Awareness Guidebook

This loss control information is advisory only. The author assumes no responsibility for management or control of loss control activities. Not all exposures are identified in this article. Contact your local, independent insurance agent for coverage advice and policy service.