Commercial Service Line Coverage
Summary
Reading Time
2 min
Protecting building owners from critical infrastructure losses not currently covered.
Most building owners are not aware that they own and are responsible for the repair or replacement of service lines on their property – the pipes and wiring that bring water, electricity, natural gas, propane, data, communications and other services to their property.
A service line is exterior, underground piping and wiring including permanent connections, valves or attached devices providing a service to the insured premises.
Commercial building owners’ insurance policies may exclude the most common causes of a service line failure leaving them exposed to repairs that can easily cost thousands, damage their property, and interrupt their tenant’s business while repairs are made.
What is service line coverage?
Service Line coverage provides payment for damage to piping, wiring, and outdoor property when caused by a service line failure.
Covered services include:
- Water, except for water used solely for fire suppression purposes
- Communications, including cable transmission, data transmission, internet access or telecommunications
- Compressed air
- Water drainage
- Electrical power
- Oil, natural gas, propane or steam, or
- Sewage or septic disposal
What is a service line failure?
A “service line failure” is physical damage, meaning a leak, break, tear, rupture, collapse or arcing of a “covered service line”. Covered causes include but are not limited to the following:
- Wear and tear, marring, deterioration or hidden decay
- Rust or other corrosion
- Mechanical breakdown, latent defect or inherent vice
- Weight of vehicles, equipment, animals or people
- Vermin, insects, rodents
- Artificially generated electrical current
- Freezing or frost heave
- External force from a shovel, backhoe, or other form of excavation
- Tree or another root invasion
Interested in Commercial Service Line coverage? Reach out to your broker today!
Please note that the information in this article may not accurately reflect your insurance policy from Sandbox Mutual Insurance or another insurance company. Please refer to your policy or talk to your broker about your specific coverages.
FAQ'S
Isn’t my service line already covered under my commercial property insurance?
You’d think so, right? But surprisingly, most commercial policies exclude damage to the underground piping and wiring that bring essential services into your building. That means if a tree root, frost, or even a curious backhoe causes chaos underground, those repair costs could land squarely on your plate. Service Line Coverage fills that gap so you’re not footing the bill for buried surprises
What kinds of service lines are actually protected?
If it keeps your business running, chances are it’s covered. That includes water, sewage, electricity, gas, steam, internet, data lines, and even compressed air. Basically, if it connects from the street to your building and helps things work behind the scenes, we’ve got your back when something goes crack, snap, or zap underground.
How expensive can a service line failure really be?
Let’s just say: thousands… with an “s.” Repairs often require excavation, licensed trades, replacement materials, and sometimes restoring landscaping or pavement when it’s all over. Oh — and don’t forget potential business interruption. Service Line Coverage helps protect both your wallet and your operational sanity.
