Polar Vortex hits Michigan – Business Insurance and Freezing Pipes


Michigan has recently learned what a Polar Vortex feels like.

Freezing temperatures are a reminder to all business owners who own a building to review their  insurance policy for Protective Safeguard language in regards to their sprinkler system.

Winter is far from over and with the recent polar vortex some Michigan business owners who own their own buildings may have turned their sprinkler systems off temporarily due to damage or impairment.   Coverage could be jeopardized in the event those business owners experience a fire loss if the insurance company was not notified that the system was turned off, even temporarily.

That’s why it’s a good practice to review your business owners policy Protective Safeguard language to know if this endorsement requires a business owner to notify the insurance company if and when sprinkler systems are temporarily shut down as a result of damage. For the policies that have a Protective Safeguard endorsement, the denial language references situations where the insured knew the system was shut down and did not notify the insurer. Some policies only require notification if the sprinkler system is going to be shut down for more than 48 hours. Others have exclusionary language stating the loss will not be covered if the insured “knew of any suspension or impairment in any Protective Safeguard listed in the schedule above and failed to notify us of that.”

The important point in any regard is to know if your business owners policy has those Safeguards and what your responsibilities are in order to maintain coverage.

If you have further questions please call us at 800-860-0930 or visit http://alliedinsmgr.com/business-insurance/




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Headquartered in Rochester Hills, Mich., Allied Insurance Managers is one of the largest, privately-owned, independent insurance agencies in Michigan.