Are you prepared for a power outage?

Are you prepared for a power outage?

Power outages are unfortunately becoming a somewhat common occurrence in parts of Australia. The threat of heatwaves, and therefore higher than usual demands on power, means that power outages are a real threat to many businesses over summer.

Insurance protection during a power outage

It’s important that all businesses understand their insurance cover in case of events which impact the running of the business, such as a power outage. Guild Insurance will provide cover when the power outage is unplanned, and this is defined as when there is less than 48 hours’ notice that the outage will occur. Cover will be provided for the cost of hiring a generator. And the really beneficial part about this cover is that there’s no waiting period with Guild Insurance. So if the power is out for only 2 hours, the policy will still respond and provide cover for that short period.

Planning for an outage

Sometimes there is no notice that a power outage is to occur. And even when notice is given, there may not be enough time to allow a business to adequately prepare for the outage. Therefore it’s vital that all businesses have a plan in place, sometimes referred to as a business continuity plan, for what they’ll do if a power outage was to affect their business.

Some factors to consider when making this plan include:

  • Is there a business nearby which provides generators for backup power?
  • Can the business continue running from another site or location?
  • Is there another location where items, such as refrigerated stock, can be stored so they don’t perish or become damaged?
  • Where will emergency contact details (e.g. power company, insurer, clients) be stored away from the business in case the business can’t be accessed?
  • What are the implications for both the business and clients if the business doesn’t operate for a period of time?

Remember, planning during an outage is too late. Don’t think this won’t happen to you, have a plan just in case.


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