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Oct
24
Preventing Power Surges For Your Business Insurance In California

While most enterprises have some business insurance, California business owners sometimes miss some of the basic steps that can be taken to prevent damage to property. It’s important for businesses to practice sound risk management or loss control by taking steps to minimize risks and damages. Power surges in a business setting can cause damage to electronic equipment and interrupt the flow and functioning of the enterprise.

According to the Insurance Institute for Business and Home Safety (IBHS), up to 80% of power surges are internally generated. They can be caused by large amounts of power being used by elevators, air-conditioners, refrigeration units and other motors as they switch on and off. Welding equipment may also cause surges although these tend to be more minor.

External causes include problems within the power supply such as high demand, equipment or power line problems, and faulty wiring. Lightning may cause surges but it is quite rare – in fact only about 2% of surges are estimated to be caused by direct lightning strikes. However, lightning may also indirectly cause surges through the generation of strong electro-magnetic fields.

To protect the business from power surges, it is recommended by the IBHS to make use of certified electrical surge protection systems, and to separate circuits between office equipment and heavy machinery. It may also be worthwhile to ensure that the electrical system is correctly grounded – a certified electrician should be consulted for this.

In any event, it’s also important to regularly review your business insurance. California entrepreneurs should aim to do it at least annually, to ensure that coverage is altered if necessary to accommodate changes to the business or assets.