The utility industry is a complex one that is constantly changing as new and innovative energy generation sources and distribution channels are developed. It is also an industry that is highly competitive and comes with both great potential risks and great rewards. One way to lessen the inherent risk and protect the investment you have made in your utility company is through a comprehensive business insurance plan that is geared specifically for this multifaceted industry.
What Types of Businesses Fall within the Utilities Sector?
All businesses in the United States fall within a specific industry sector, as classified by the National American Industry Classification System, or NAICS. This system was created for the purpose of economic data collection, analysis and reporting. There are currently 34,479 businesses categorized under the NAIC’s Utilities Industry Sector. These include the following business types:
- Power Generation, including:
- Hydroelectric Power Generation
- Fossil Fuel Power Generation
- Nuclear Electric Power Generation
- Solar Electric Power Generation
- Wind Electric Power Generation
- Geothermal Electric Power Generation
- Biomass Electric Power Generation
- Utility Distribution, including:
- Electric Power Distribution
- Natural Gas Distribution
- Electric Bulk Power Transmission Control
- Water Supply and Irrigation Systems
- Sewage Treatment Facilities
- Steam and Air-Conditioning Supply
Protect Your Utility Company with the Right Business Insurance Policy
When you are running a utility company of any type, you run the risk of liability lawsuits, property damage and losses caused by equipment breakdowns and malfunctions. Fortunately, a business insurance policy that is tailored specifically for the utilities industry can help your company avoid undue financial losses.
There are several different coverage options you may want to add to your utility sector business insurance plan. For example, in addition to the typical general liability and business property coverage common to all business insurance plans, you may benefit from having:
- Public entity management liability (PEML) coverage: This is designed to cover losses brought about by the misconduct of duties by or for a public entity. Wrongful acts included under this coverage include any act, error or omission that result in injuries or property damage.
- Pollution liability coverage: You may wish to buy pollution coverage that is broad enough to include the specific hazards you face within your particular subsector of the utility industry. For example, water treatment facilities will likely need pollution insurance that includes coverage for sewage line back-ups or issues with chlorine and sodium hypochlorite in water.
- Equipment breakdown coverage: When vital business equipment breaks down, it can force you to temporarily halt operations. The longer you go without satisfactory equipment, the more money you stand to lose. This insurance provides coverage for maintenance, repairs and rental equipment at times when extensive repair times are necessary.
- Supply chain risk insurance coverage: In many industries, particularly the utilities industry, businesses are dependent on others along the supply chain. If there is a weak link or a fault within this supply chain, even if it is not the fault of your company, this can damage both your reputation and your bottom line. This coverage helps identify weaknesses, provide a contingency plan and avoid losses.
Of course, there are many more coverage options available with this type of business insurance plan. The coverage types that are right for your utility company will be largely dependent on its size, scope and nature. To ensure that you are protecting all of your business assets and are fully covered against potential liability losses, it is to your advantage to discuss your options with an independent insurance agent before purchasing a policy.
An Independent Insurance Agent Can Help You Build a Policy for Your Utility Company
Business insurance policies can be confusing, and when it comes to the utility services industry, the many coverage options that are offered only add to its complexity. Fortunately, you can turn to an independent agent in the Trusted Choice® network for help with building a policy that is designed specifically for your utility services company. Unlike captive agents, these insurance agents are free to work with a number of different insurance providers to help you get all the coverage you need at an affordable rate.
Contact an independent insurance agent near you to get information and answers to your insurance related questions. You can start comparing quotes for utility sector business insurance in no time.