Loadshedding | Understanding the risks and how to mitigate them

Discover our series of articles introduced by our members on loadshedding | Article #4 Morebo 

Load shedding is the practice of suspending or interrupting the supply of electricity as part of a planned schedule to prevent damage to the electricity grid.

When load shedding is implemented, it can cause inconvenience and frustration for individuals and businesses alike. However, it is important to understand the risks associated with load shedding and how to mitigate them.


One of the most significant risks associated with load shedding is power surges. A power surge is a sudden rapid variation of the voltage magnitude or a power spike in any electrical system. These surges can cause damage to electronic devices, which may not be covered by insurance. While insurers may cover power surges, claims resulting from electricity grid failure or power surges that occur as a result of switching on electricity following no power in excess of 12 consecutive hours are typically not covered.


To mitigate the risks associated with load shedding, individuals and businesses can take several measures. Firstly, it is best to unplug electronic equipment when the power has been switched off. After power has been restored to your premises, it should be safe to plug them back in again. Surge arrestors or surge protection devices may also provide protection against power surges, but it is important to choose a device that offers protection against over-voltage, under-voltage, multiple strikes, and lightning.


It is also important to recognise that load shedding is just one of many potential causes of business interruption. In recent years, perils such as cyber-attacks, political violence, strikes, pandemics, and power outages have become increasingly relevant. These non-physical damages may cause business interruption, potentially affecting significant losses for companies without property damage.


As a result, traditional business interruption cover may not be enough to cover the true business interruption risk companies face. Morebo is helping its clients with solutions that mitigate against the risks of today and ensure business continuity. 


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