Prepare for Possible PG&E Power Shutdowns


Business Interruption Coverage Can Cover Lost Income

PG&E has warned California residents and businesses that it may shut down the power grid for as long as five days for large portions of the state when there are high-wind conditions during the dry fire season. That’s because PG&E’s infrastructure was found to be the cause of several recent wildfires.

PG&E sent letters to customers informing them that “if extreme fire danger conditions threaten a portion of the electric system serving your community, it will be necessary for us to turn off electricity in the interest of public safety.”  With the specter of multiple-day power outages, businesses need to be prepared for keeping their operations going and preventing losses that may not be covered by insurance.

Just think how difficult it would be if you lost access to your computers, which are the nervous system of any business today. If you have no power, your operations could be shuttered for all intents and purposes.
There a number of steps you can take to make sure your business is resilient and can keep functioning during power outages, especially if they last a few days:

Identify vital business functions

Identify business processes that will be affected by a power outage. These processes will differ from business to business, but once you put them all down on paper, it will be easier for  you to make a plan to keep them going.

Create a continuity plan

Once you’ve identified those processes, you should brainstorm on how you can keep them going without your regular power supply.

  • Create a plan outlining how employees should respond to the power outage.
  • Post emergency numbers on sight for employees to call, including your electricity supplier to get an estimate on when power may be restored.

Back-up power a must

Consider investing in a back-up generator that can keep the critical functions of your firm going during a power outage. Generators need to be used with adequate ventilation to avoid risk of carbon monoxide poisoning. Never plug generators directly into power outlets. Never use a generator under wet conditions, and let it cool off before refueling.

Cloud storage and MiFi

If you have not done so, you should secure a means of paperless document and file storage on the cloud. If there is a power outage and an accompanying surge, you could quickly lose your data. Plan ahead with a cloud server.

You should also prepare a system of personal wireless hotspots, or MiFi devices, so that even when the internet goes down, you can finish important tasks requiring web access, such as setting up an e-mail auto-response.

Consider business interruption coverage

The best way to minimize the financial blow is to have the
proper insurance in place. A multiple-day power outage could really crimp your income stream and, if you lose money due to your inability to operate, the typical business owner’s policy won’t cover lost revenue.

But, a business interruption policy would. These policies will reimburse you for lost revenues due to a number of events, including “service interruption” due to power outages and other utility services interruptions.

The important caveat is that the interruption was not caused by any of your own faulty equipment or wiring. But if the power company is shutting down power, any losses you incur should be a valid claim.

Attention !

Coronavirus – Mindful Insurance Remote Work Arrangements

At Mindful Insurance Solutions, our top priority has always been to deliver best-in-class service to our clients.  We chose the name “Mindful” precisely to be “present and willing to do something” with our clients, and that’s what we always strive to be—present with you in your business.

To ensure that we remain true to our name during the current coronavirus pandemic, we are taking every precaution possible to protect the health and safety of our team and their families.

Therefore, in line with much of the rest of the country, as of today, our team will work remotely, and our physical office locations will be closed.

For now, our plan is to maintain remote work arrangements for as long as local authorities require or medical experts advise.  We will closely monitor the situation to determine when we can return to our normal office procedures. The good news is that our technological capability enables everyone on our team to work seamlessly from remote locations. During this period, we will continue to be readily accessible to you. Your emails and phone calls/voicemails will be answered as per usual, and our Mindful Insurance professionals will work to meet your needs in all the ways you have come to expect from us.

We understand that insurance is a people-oriented industry, and Mindful prides itself on being a people-oriented company.  But while there is no substitute for face-to-face interaction, it is prudent to curtail such interaction as much as possible until things return to normal.  Therefore, Mindful also stands ready to interact with you via remote video/teleconferencing as desired.

These extraordinary steps are necessary to preserve the health of our team and to help curtail the spread of the virus, while upholding our commitment to you, our clients.  On behalf of the entire Mindful team, I want to thank you for your understanding and support during these challenging times.  We wish you, your families and your teams much good health.

In your service, stay healthy and safe,

William Donaldson President / CEO


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