Warmer weather brings the increased risk of equipment damage from lightning, utility breakdowns and other causes of high voltage power surges. Storms and heavy demand for air conditioning lead to millions of dollars in losses because of overloaded electrical circuits. Do your clients have insurance protection that pays for business equipment damaged by power surges, lost income and related expenses?

SURGES HAVE MANY SOURCES

“The most obvious source of power surges is lightning,” said William Bartley, P.E., the principal electrical engineer who establishes electrical standards at HSB, “but these high-energy pulses also can come from normal utility switching operations, or when a power line falls to the ground. Surges can also come from within a building from air conditioners, heating systems, production machinery, elevators, motors and pumps, arc welders and other equipment.”

HOT WEATHER INCREASES EXPOSURES

Power surges are a leading cause of equipment breakdown and property damage. They can occur at any time of the year, but hot weather increases the chances for power disruptions. One reason is that lightning season begins in the spring and peaks in summer with most strikes in July and August. People often discuss lightning and power surges as distinct phenomena, although lightning is just one type of power surge.

POWER DRAIN LEADS TO LOSSES

Thunderstorms, heat and humidity also strain utilities as wind damage and demand for air conditioning increases, resulting in power surges from normal current switching, blackouts and brownouts. The damage occurs not when electricity suddenly cuts out, but when it resumes, sending a surge of voltage through the lines. It doesn’t take much to damage today’s sensitive electrical and electronic equipment.

IT CAN HAPPEN TO ANYONE

HSB pays HSB pays thousands of claims for equipment damage and related expenses due to manmade power surges each year in commercial locations. Equipment breakdown insurance is not designed to cover lightning, although Hartford Steam Boiler works with dozens of other carriers that cover property damage resulting from strikes. Virtually any of your clients could have a surge-related breakdown like these:

• A power outage and subsequent surge damaged the communications system and emergency generator in a 100-patient nursing home. Total paid loss: $55,658.

• Arcing and a surge from a substation located inside a large warehouse severely damaged the building’s electrical system. Total paid loss: $226,569.

• A utility power surge damaged the computers and telephone system in the offices of a dental practice. Total paid loss: $32,905.

THE COVERAGE THEY NEED

Power surges are a leading cause of electrical equipment damage. With businesses so dependent on electrical and electronic equipment, an unexpected surge can result in a serious financial loss. Surge protection systems are the best defense against high voltage, but there is no guarantee they will prevent a breakdown. Protect your clients with equipment breakdown insurance from Hartford Steam Boiler.