loss of earnings due to power cuts

[gdflpp]

is it true that insurance policies on businesses stipulate that in order for insurers to consider a business interruption claim under the Failure of Public Supply extension it requires the Damage to be at the station or substation of the supplier and hence refuse payment if the power failure was due to a cable fault on the high voltage underground network which caused the fuse to blow at the substation.

[wishy123]

Short answer is that it depends on what wording applies. Many wordings do require actual damage at the substation (fire, impact by vehicle etc) but there are wider 'terminal ends' wordings also on the market that provide cover for any failure affecting the supply, as long as the cause of the failure is outside the business premises. Suggest you check your wording.