Who’s Going To Pay For All The Rotten Claims?
By Robert Warne - September 17, 2003 In the aftermath of the massive Aug. 14 blackout, companies and individuals are having a difficult time getting compensation for their perishable claims.
With the lights on, the losses attributed to spoiled food are obvious, but the lengthy process of determining the cause, and who is to blame, has left most claimants in the dark as to whether their claims would ever be paid.
Associated Food Dealers of Michigan President, Michael Sarafa explained that some carriers are saying that the blackout was equipment failure and not a disaster and therefore they may not be obligated for damages.
And while some are pointing fingers at carriers for not paying their claims, others are pointing their fingers at the energy companies.
New York residents with spoiled food were enraged when they found out that Consolidated Edison wasn’t going to honor any claims.
Since 2001, a policy has been in place at Con Ed that established a $10 million liability ceiling for consumers to file claims up to $350 for damaged groceries resulting from a power failure in exchange for not suing the company.
But because it looks like the cause of the failure originated upstream, the company’s current position is that it’s not at fault for the power outage.
With the final outcome on all of the blackout claims still in flux it’s amazing how such an incident underscores how dependant society has become on electricity and insurance.
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