The insurer won’t cover any loss, damage, or liability caused by a grid collapse.
Outsurance has joined a growing list of insurers that have added grid collapse exclusions to their policies, removing cover for any loss, damage or liability caused by an Eskom blackout.
Outsurance says the risk of a grid failure is still remote. However, the insurer explains that it can no longer consider it an unforeseen event, meaning it no longer falls within the scope of insurance or reinsurance cover.This policy does not cover any loss, damage or liability directly or indirectly caused by a total or partial interruption, interference, failure or suspension of the supply of electricity or restoration thereof.
“Whilst it is regrettable that this cover will no longer be available, to ensure sustainability and that we are there to assist you on future interactions and claims, it is a necessity,” says Outsurance. In early February 2023, Hollard Insurance notified its clients of an “Electricity Grid Failure” exclusion added to their policies.
“This means that electricity grid failure — as defined in our letter to our clients — is an uninsurable event,” Bloom said. “Hollard is attempting to make this clear for policyholders.” Santam’s personal lines underwriting head Attie Blaauw explained that it is essential to clarify what it could and could not cover. He also said the policy change resulted from reinsurer pressure.
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