Insure practice against losses from power outages


An unexpected loss of electricity could ruin refrigerated medical products. Discover what you need to do to insure these valuable goods.

Q: Recently we had an ice storm in our city that knocked out power for 3 days. My colleague had $120,000 in refrigerated pharmaceuticals thaw and now is being told by his insurer that his loss is uncovered. How do I protect my practice?

A key component of evaluating a proper limit for such coverage is the maximum value you'd have at any one time if you received your largest suppliers' shipments all on the same day. Such protection typically insures against spoilage losses occurring due to a change of temperature or humidity resulting from complete or partial interruption of electrical power either on or off the premises, if due to events beyond your control.

Answers to our readers' questions were provided by John W. Miller II, principal of Sterling Risk Advisors in Marietta, Georgia. Send your money management questions to Also engage at and

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