The insured, a school with dorms, carries a CP 10 30 06 07, Causes of Loss – Special Form, and CP 00 30 06 07, Business Income and Extra Expense Form. A windstorm blew a tree over a power line on the insured's premise, which broke the pole and the power line, shutting down the school with a threat of having to find separate housing for all students. The power line and poles are owned by the school, not the utility.

The insured called the utility on an emergency basis to repair the line and replace the broken poles. The insurance company says there is no coverage due to exclusion B.e (2) of the CP 10 30 for utility services. The insurer stated the loss originated at the premises.

Our position is that the beginning of this exclusion states, "We do not pay for loss…" from "The failure of power, communication, water or other utility service supplied to the described premises, however caused." This loss is not a failure of utility service supplied to the premises. It reached the premises and was not interrupted prior to reaching the power lines and poles that are owned by my insured.