Startup Centinel launches parametric power outage cover for SMEs

By Henry Gale

May 13 - (The Insurer) - Parametric insurance for the costs of extended power outages is now available in the U.S. through startup Centinel and agency network Catalyit.

Centinel, founded in 2022, has started offering the coverage through Catalyit, a technology firm with a network of more than 12,000 independent insurance agencies. It is initially available in 10 states.

Standard business owner and commercial policies tend to exclude coverage for power outage events, Centinel's founder and CEO Soton Sauerland told Parametric Insurer. Its parametric product triggers payouts to businesses automatically after a blackout.

"If a power outage impacting the SME lasts for at least 72 hours, then Centinel notifies the SME and sends the protection amount they chose – no deductibles and no complex claims," said Sauerland.

The payment can then be "put towards anything they need to keep their business running", she added.

A major outage in Spain and Portugal two weeks ago put the spotlight on power outage losses, with early estimates suggesting most losses will be uninsured.