The recent wave of blackouts across Spain and Portugal brought entire regions to a standstill. With businesses offline, transport disrupted and supply chains left in limbo, the events served as a stark reminder of how quickly things can go wrong and how wide-reaching the impact can be.
At first glance, UK firms might view such outages as distant problems. But in today’s interconnected world, these disruptions highlight vulnerabilities that many UK businesses share. Whether it’s energy dependency, over-reliance on key suppliers or a lack of preparation for worst-case scenarios, these events should serve as a prompt to ask: how would we cope if it happened here?
At Sustain, we help businesses protect more than just their physical assets. We work with clients to build insurance programmes that support operational continuity, minimise downtime and keep recovery on track when the unexpected strikes. In this article, we’ll explore what a scenario similar to a blackout would mean for UK firms and how to ensure your insurance is pulling its weight.
The Risks of A Power Failure
In Spain and Portugal, the outages affected more than homes and high streets. Businesses of all sizes faced frozen tills, failed security systems, inaccessible cloud data and disrupted deliveries. As public infrastructure went dark, critical services, including airports and public transport, ground to a halt.
This scenario is becoming increasingly plausible. Ageing infrastructure, increased demand on the grid and the rising frequency of extreme weather mean that even short-lived outages can create lasting disruption.
For sectors like manufacturing, logistics, food and beverage or retail, the consequences can be immediate and expensive, even without physical damage.
The Importance of Business Interruption Insurance
This is where Business Interruption (BI) insurance comes into its own, but only if the policy has been structured to reflect your real-world exposures.
Many traditional BI policies are triggered only by physical damage (fire, flood etc.). In the case of a power outage caused by a fault at a local substation, or even a national grid issue, you could be left without cover unless your policy includes non-damage business interruption or denial of access extensions.
Likewise, contingent business interruption can protect you if one of your critical suppliers, whether here or abroad, is unable to operate due to a blackout or infrastructure failure.
At Sustain, we work with you to understand your operations, assess your dependencies and ensure that your BI cover is adequate when you need it.
It’s Not Just About the Policy
Underwriters are increasingly asking about business continuity plans, supply chain visibility and cyber risk management, particularly when it comes to essential utilities like electricity. We help clients consider the wider picture, offering guidance on preparedness, communication and continuity planning. The result? A stronger negotiating position with insurers and a more robust recovery strategy when it counts.
Could Your Policy Keep Up With a Real Outage?
If you haven’t reviewed your business interruption insurance in the last year, now’s the time. Are your policy limits realistic given your current turnover? Have your operational risks evolved since the policy was set up? Could you be relying on suppliers or tech platforms that aren’t adequately accounted for?
These are the questions we ask every day and they’re exactly the kind of detail that makes the difference between a fast recovery and a long, costly disruption.
Let’s Talk Resilience
At Sustain, we believe insurance should do more than pay out; it should empower you to bounce back. Whether you’re a logistics provider, manufacturer, charity or service-based business, we’ll help you build cover that reflects today’s risks, not yesterday’s assumptions.
Get in touch if you’d like to review your existing policy or explore how bespoke business interruption insurance could support your continuity plans.
