The Insurance Council of New Zealand (ICNZ) says many businesses hit by a recent blackout in Auckland may have to cover the cost themselves.

A blackout last week left more than 70,000 homes and businesses without power for five hours after an earth wire snapped in high winds and fell into Transpower’s Otahuhu substation.

The wire damaged 110kV supply lines, causing a power outage to large parts of the city. The outages were the worst since the Auckland blackouts of 1998.

ICNZ CEO Chris Ryan told Sunrise Exchange News many companies are covered for business interruption, but due to the short timeframe of the outage many insurance policies may not cover the blackouts.

“People are advised to look at the details of their policies,” he said.

Mr Ryan says such exclusions can be included in some cheaper insurance policies. He has spoken with many brokers and the response has been generally positive. “The majority of people in the community have been understanding also.”