The Outer Banks Disaster – What This Means To Me as a Business Owner?



It’s all over the news.


You can’t help but feel sorry for the businesses and the families that were expecting a large time this July.    

Enter the contractor.  Pile driving in the water caused a power lines to be struck and the electrical supply for the lower islands is suddenly out.  

10,000 people were evacuated and businesses were forced to shut down. The loss of tourist dollars to these businesses is immense.


Now onto the coverage needed.


Off Premises Power failure should be endorsed on your policy to get a payout for the substantial loss of income.

Some policies are designed with a “throw in” coverage that is limited. You should not assume that you will be paid at all, until you get a close look at the policy you own, and see the language needed to start the process.

You must have loss of “business income” coverage to start, and then have an endorsement that gives you the additional coverage call “Loss of Income – Power Failure Off Premises”

If you find that coverage, look for the amount. It should equivalent to the number of days, weeks or months that this utility is potentially down and you cannot get power to your business. Always err on the side of more than less.

Some larger hotels and businesses in the area were losing tens of thousands of dollars a day.

If the power stays out for fourteen days, the math is easy. At $10,000 a day, that’s $140,000 of coverage needed.             

Don’t wait for a loss like this to check your coverage.

Give us a ring today and let us help you review this important endorsement!


Jeff Rosenkilde, Sr. CIC is a Certified Insurance Counselor with over thirty years of experience insuring small businesses in the Mid – Atlantic Area. His firm, Rosenkilde and Associates, insures over 4,000 policy holders and specializes in business insurance and risk transfer. 

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