A significant blackout in April 2025 impacted both Spain and Portugal, prompting insurers to rethink how businesses prepare for power outages. A report from HDI Global highlights the growing need for companies to include blackout risks in their business continuity plans.
As power outages become more frequent due to technical failures, extreme weather, and cyber threats, insurers are urging businesses to take these risks seriously. Philipp Glanz, managing director at HDI Risk Consulting, emphasized that energy disruptions are now common. These unplanned outages can lead to business interruptions, damage to equipment, and longer recovery times.
Insurers are encouraging clients to move beyond basic backup systems. Many businesses have generators and uninterruptible power supply (UPS) units, but few test these systems under real conditions or understand how long they can maintain operations without grid power. Insurers want to see clear protocols for shutting down, restarting, and prioritizing critical functions during a blackout.
Certain industries, like manufacturing, chemicals, food logistics, and pharmaceuticals, face higher risks. A power loss in these sectors can cause permanent damage or spoilage, resulting in costly claims. Additionally, companies are starting to recognize the importance of employee welfare during outages. If staff cannot or do not want to stay at work during a blackout, it adds pressure to keep operations running smoothly.
Communication is another critical issue during power failures. Blackouts can limit access to data, delay loss reporting, and disrupt decision-making processes. As the landscape of claims evolves, insurers are increasing their engagement before losses occur. HDI Global reports a rising demand for technical risk reviews, scenario testing, and specific planning for blackouts. Glanz noted that insurers are shifting from a reactive approach to a proactive one, focusing on supporting clients before incidents happen.
With energy stability under strain and regulatory expectations rising, insurers are likely to adopt stricter measures regarding how blackout risks are managed. Firms that can demonstrate preparedness may find it easier to secure insurance coverage and reduce recovery times in the event of future outages.