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Carrier Losses From Blackout Expected to be Modest

Insured losses resulting from last Thursday's massive power blackout are expected to be modest. No specific dollar figure is available yet. The Insurance Information Institute...
August 18, 2003

Insured losses resulting from last Thursday's massive power blackout are expected to be modest. No specific dollar figure is available yet. The Insurance Information Institute reports that most commercial policies carry specific exclusions for power failures, and coverage under business interruption policies usually kick in after an interruption goes beyond 24 hours. Although many homeowners policies cover such things as food spoilage, losses are likely to be below policy deductibles according to III.

In 1977, a two-day blackout in metropolitan New York resulted in $2 million in insured losses. However, civil disorder associated with the blackout caused significantly more damage, totaling $28 million. The 1965 Northeast blackout resulted in minimal insured losses.

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