Business Interruption After a Power Cut – How CEC Turned a Likely Decline Into a Fair Settlement

Unexpected disruptions can cost businesses far more than they realise, especially when insurers question whether a loss is real or just delayed. For brokers, these situations often turn into long, technical debates that leave clients frustrated and out of pocket.

At CEC, we step in when that happens, transforming complex, easily dismissed claims into fair, evidence-backed settlements that protect both the client’s position and the broker’s relationship.

The Case: One Day With No Power, and No Sales

A neighbouring contractor accidentally severed the electrical supply to a company’s main premises. Power was down from 8.30am to 6.30pm. Eighteen staff were sent home, the website and phone lines went offline, and no orders could be processed.

The business, which generates significant sales through its online platform, initially presented a claim for loss of profit based on its average daily turnover – simply dividing annual revenue by the number of trading days in a year. While this may seem a reasonable way to calculate a day’s loss, it doesn’t meet the evidential requirements of a business interruption policy.

When the insurer’s loss adjuster reviewed the claim, they rejected it outright, arguing that it lacked proper evidence of loss as defined by the policy. They requested full accounts and daily sales records and questioned whether any income was genuinely lost or simply postponed.

Without expert support, the claim was at serious risk of being declined altogether with zero payout.

CEC’s Involvement: From Rejection Risk to Resolution

The broker asked CEC to assist under the client’s service package.

The policy did provide cover for loss of profit following a power interruption, but it required proof of an actual and irrecoverable loss of sales, not simply interruption to trading.

CEC’s adjuster explained the situation clearly to both the client and broker. The task was to demonstrate that the outage caused a genuine drop in revenue that would not be recovered later. We analysed detailed sales data, established the gross profit rate, and adjusted turnover figures to reflect a 14.45% annual growth trend, creating robust, evidence-based support for the claim.

When the insurer’s adjuster offered an initial settlement, we challenged their calculation and presented our findings. Following negotiation, the claim was agreed at a fair value – and crucially, one that only existed because the loss had been properly evidenced and argued.

All work was completed within the client’s included service hours, so there was no additional cost for our support.

The Result: Fair Settlement, Protected Relationships

What began as a likely declined claim became a recognised and fairly settled loss. Without CEC’s expertise, the client could easily have been left with nothing. Instead, they received a fair payment, the broker retained their client’s trust, and the process concluded quickly and professionally.

Why Brokers Partner With CEC

Even modest claims can unravel when insurers challenge how losses are calculated. That’s where CEC makes the difference, providing the technical understanding and persistence needed to turn insurer doubt into fair settlement.

Working with us means:

·        Expert guidance through business interruption claims and evidential requirements

·        Clear, data-driven claim formulation that meets insurer standards

·        Negotiation strength that protects client outcomes and broker credibility

·        No unexpected costs when support falls within service packages

When your client faces a loss that insurers might dismiss, CEC ensures they don’t walk away empty-handed, and you remain the trusted adviser who made it right.

Get in touch with CEC today to see how we can help secure the results your clients deserve.