On the fourth day after the emergency generator went into operation, it suddenly broke down. At that time the normal power supply to the location was not yet restored, and the premises was left with no power.

The insured claimed a loss of $70,000 in perishable stock due to lack of electricity. The insurance company is applying the equipment breakdown perishable sublimit of $25,000 to the loss, indicating that the damage was a result of the equipment breakdown. It is our opinion that this loss is covered under the off-premises utility service direct damage endorsement that was triggered by the windstorm, which we consider to be the proximate cause of loss. Please give us your expert opinion.

Puerto Rico Subscriber

We agree that the windstorm caused the loss, not the breakdown of the backup generator. If not for the storm causing the power outage, there would be no loss. If the insured did not have a backup generator at all, there still would have been a covered loss from the power outage.