The excavator settled its assets and filed for Chapter 11.
When reviewing your policy, watch for these three hidden applications of the T&D exclusion: transmission and distribution lines exclusion clause
"This insurance does not apply to 'bodily injury', 'property damage', or 'personal and advertising injury' arising out of the ownership, maintenance, operation, or use of any transmission or distribution lines, including any towers, poles, wires, cables, or transformers that are part of such lines." The excavator settled its assets and filed for Chapter 11
The CGL carrier denied the entire claim, citing the Transmission and Distribution Lines Exclusion Clause . The policy excluded "any loss arising out of any distribution line, regardless of negligence." The excavator's umbrella policy had a follow-form exclusion. The company had no separate "utility lines coverage" endorsement. The company had no separate "utility lines coverage"
For entities that cannot afford the risk of a T&D failure—such as municipal utilities, independent power producers, or large-scale manufacturers—there are ways to mitigate the exclusion:
| | Typical Exclusion | |------------------|------------------------| | Transmission towers and poles | Yes | | Overhead conductors and insulators | Yes | | Underground distribution cables | Often excluded (but may have limited “dig‑in” coverage) | | Substation transformers (if solely serving T&D) | Sometimes excluded; sometimes separately insured under “substation” wording | | Wildfire caused by T&D line failure | Yes (critical for California, Australia, Mediterranean) | | Business interruption from grid outage | Yes, unless specifically endorsed | | Vegetation management costs | Yes | | Cyber‑attack on SCADA/EMS controlling T&D | Yes, unless separate cyber policy |
The standard exclusion clause effectively states that the insurer will not pay for bodily injury, property damage, or business interruption caused by the breaking, sagging, arcing, or general failure of these lines.
The excavator settled its assets and filed for Chapter 11.
When reviewing your policy, watch for these three hidden applications of the T&D exclusion:
"This insurance does not apply to 'bodily injury', 'property damage', or 'personal and advertising injury' arising out of the ownership, maintenance, operation, or use of any transmission or distribution lines, including any towers, poles, wires, cables, or transformers that are part of such lines."
The CGL carrier denied the entire claim, citing the Transmission and Distribution Lines Exclusion Clause . The policy excluded "any loss arising out of any distribution line, regardless of negligence." The excavator's umbrella policy had a follow-form exclusion. The company had no separate "utility lines coverage" endorsement.
For entities that cannot afford the risk of a T&D failure—such as municipal utilities, independent power producers, or large-scale manufacturers—there are ways to mitigate the exclusion:
| | Typical Exclusion | |------------------|------------------------| | Transmission towers and poles | Yes | | Overhead conductors and insulators | Yes | | Underground distribution cables | Often excluded (but may have limited “dig‑in” coverage) | | Substation transformers (if solely serving T&D) | Sometimes excluded; sometimes separately insured under “substation” wording | | Wildfire caused by T&D line failure | Yes (critical for California, Australia, Mediterranean) | | Business interruption from grid outage | Yes, unless specifically endorsed | | Vegetation management costs | Yes | | Cyber‑attack on SCADA/EMS controlling T&D | Yes, unless separate cyber policy |
The standard exclusion clause effectively states that the insurer will not pay for bodily injury, property damage, or business interruption caused by the breaking, sagging, arcing, or general failure of these lines.
