How Would Your Business Respond If the Power Goes Out?

When your business can’t run due to a power outage, it can lead to dangerous conditions and costly downtime. Establishing and communicating a strong emergency preparedness and recovery plan can help you and your employees react safely and recover quickly if your business loses electricity.

Build Your Emergency Preparedness and Response Plan

A power outage is never ideal for anyone, but the business impact can be especially damaging. Although outages often coincide with severe weather, having a plan in place can be beneficial any time. The following tips can be a good place to start:

• Outline best practices for before, during, and after a power outage.
• Identify critical systems that require immediate power.
• Install surge protection to help safeguard equipment and computer systems.
• Regularly test generators to ensure they can support critical loads.
• Establish clear procedures to disconnect and reconnect systems when power returns.
• Assign qualified staff to maintain and recover electrical equipment safely and provide key employees with accurate documentation.
• Verify insurance coverage for equipment breakdowns and update contact information.
• Use off-site or cloud storage for computer backups, and back data up regularly.
• Address liability concerns with emergency lighting and clear safety procedures for employees and clients.

Keep Up With Electrical Maintenance

A recovery plan works best when paired with regular preventative maintenance. Following manufacturer specifications for electrical maintenance can help to reduce the risk of unscheduled outages. In addition, older, poorly maintained electrical systems may lead to efficiency loss and costly breakdowns. Regularly schedule a thorough inspection of your business by a qualified professional to help catch these risks.

Take action before a power outage occurs. Talk with your Federated Insurance^® marketing representative to learn about electrical risk management for your business. Clients can access additional workplace safety resources on the Training & Resources page of mySHIELD^®.

How Would Your Business Respond If the Power Goes Out? PDF
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This article is for general information and risk prevention only and should not be considered legal or other expert advice. The recommendations herein may help reduce, but are not guaranteed to eliminate, any or all risk of loss. Examples shown are for illustrative purposes only. The information herein may be subject to, and is not a substitute for, any laws or regulations that may apply. Qualified counsel should be sought with questions specific to your circumstances. ©2026 Federated Mutual Insurance Company.