Insurance claims related to load shedding – the definitive guide

Load shedding has been an unavoidable truth and constant talking point for all South Africans with news and social media platforms buzzing with complaints, jokes and comments. Over and above the impact on the economy and local businesses, load shedding has a much more direct effect on every South African – it can severely damage your household contents and by definition, your insurance policy.

Power surges and sudden outages can wreak havoc on your electronic equipment which could lead to more insurance claims – but how will your insurance policy respond to claims related to power cuts and outages? What about gas stoves and braais? And will your cyber liability policy pay out if your backup drive got fried?

Cornerstone Insurance Brokers will never leave you in the dark and will always put your well-being first. That’s why we have put together a definitive guide on everything you need to know about insurance claims relating to load shedding and power cuts. We’ll also give you some handy tips on how you can protect your belongings, data and your pocket.

How do I claim for damages related to load shedding

First things first – regardless of what damage you have incurred, the claims process will stay the same. You will still need to contact your broker or insurer and submit a claim and follow the process from there. Remember to be completely honest and transparent about the claim and the cause of the damage – if you don’t, your claim will be rejected.

Having a qualified broker will greatly ease the process of claiming, get in touch with us today to learn more about Cornerstone Insurance Broker’s bespoke and expert services.

Avoid premium increases with surge proof adapters

Even if your electronics are insured and specified, excessive claiming will most likely increase your premium and you might be liable for excess payments. To avoid damage to your electronics due to load shedding, make sure that you have surge proof adapters on your power sockets. These adapters will protect your electronics from power surges and sudden power cuts. They come in a variety of shapes and sizes and although they may set you back a couple of hundred rand, it’ll be less expensive than a hefty premium increase or unplanned excess payment.

Taking caution when using alternative sources of energy like gas and inform your broker

Lack of electricity will inevitably lead to more and more people using alternative sources of energy, especially gas stoves, gas heaters and gas braais. If you decide to install a new gas system, there are very important things to remember:

  • Safety always comes first – make sure that all your gas equipment is of good quality and in a good working condition. If you haven’t used gas equipment for a long time, make sure that you service them properly before use.
  • Secondly, but just as important, is to inform your broker or insurer the moment you install a gas system. If you don’t, any claims relating to the gas system and its surrounds will most likely be rejected. Gas installations need to adhere to certain rules in order to be adequately insured, for example having a fire extinguisher installed or obtaining a certificate of compliance from a reputable gas installer. If you don’t have these, you will not be adequately covered.

Protect your cyber assets

For most companies, their data is their greatest asset. The financial and legal implications of data theft or data loss can be profound. That’s why every smart company owner knows that a cyber liability insurance policy is a no brainer.

As with most insurance policies, there are certain conditions that must be met for the policy to be valid. One of the biggest conditions of a cyber liability insurance policy is that frequent data backups must take place and that these backups must be stored safely on a backup drive. But what if a sudden power surge or blackout fried your backup drive and reset your backup systems?

The best way to ensure accurate and reliable backups, is to use cloud storage systems like SharePoint or iCloud, alternatively you can also install a UPS on your backup systems to give you some time to shut down the system properly. You can also protect your hard drive or backup computer by getting a surge proof power socket.

If you have any questions regarding your current insurance policy or if you would like to learn more about Cornerstone Insurance Brokers and our bespoke insurance solutions, click here to visit our page. Also remember to follow us on Facebook and LinkedIn for more useful and informative content.

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