Bracing for blackouts: how to keep your business running when power fails

No country or business is immune to blackouts. Global electricity demand growth is set to accelerate further in the years ahead, adding the equivalent of Japanese demand to global electricity use each year, according to the International Energy Association. This appetite is due to conventional uses of electricity but also to new sources of demand, such as electric vehicles and AI-focused data centers.

This rising electrification and demand for power - for everything from transport to banking - as well as changes in the way we generate electricity, leave businesses and people vulnerable to outages.

Spain and Portugal suffered an unprecedented power cut in April 2025, stranding rail and metro passengers, temporarily closing businesses and affecting communication networks across the Iberian peninsula. The power failure, which lasted nearly 23 hours in some regions, is estimated to have cost the Spanish economy around 1.6 billion euros, according to news reports.

Increasing reliance on renewable energy could leave businesses in Western Europe even more exposed to power cuts. Renewable energy assets face significantly more physical climate risk than fossil fuel-based infrastructure, according to a report by Zurich Resilience Solutions. By 2030, 83 percent of Europe’s clean energy generation, especially solar power, will be at high risk, the report finds.

Power cuts can also arise from events that occur on a company’s own operations. A fire in the engine room of cruise liner Carnival Triumph in 2013, for example, damaged the vessel’s power generators, leaving the ship and more than 4,000 passengers and crew members adrift in the Gulf of Mexico for several days, largely without lights, air-conditioning or functioning toilets.

The steps a business takes to prepare for a power cut can make all the difference to how it performs during blackouts, according to Yassine Saidoun, Head of Zurich Resilience Solutions (ZRS) in France, Zurich’s risk consultancy which works with customers to manage their risks, from prevention through to mitigation and analyzing losses.

“We take two perspectives when working with customers,” says Saidoun. “Firstly, we suggest internal actions customers can take to control the risk of a power cut arising on their own locations.

“Secondly, we help businesses mitigate the impact of a power cut coming from external disruption, that is, identifying what a business would do if the disruption comes from something out of its control.”

 

Here are five steps businesses can take to prepare, respond and recover when the lights go out.

1. Know your risks to understand potential impacts

Preparation starts with understanding the unique vulnerabilities of your business. Companies can begin by conducting a thorough risk assessment and cataloguing all critical assets and processes that rely on electricity, such as IT servers, security systems, refrigeration, manufacturing lines and customer service channels. It’s a good idea to map out which departments or locations are most sensitive to outages and consider additional factors, such as fire hazards, severe weather, or aging infrastructure, that could increase risk. This will help businesses prioritize where to focus emergency planning and investments. Don’t forget to regularly perform maintenance and inspections of own equipment, such as power installations and electrical cables.

Larger companies tend to be better equipped to handle power outages compared to medium-sized businesses, which may lack the expertise and resources for comprehensive preparedness, according to Saidoun. Companies with international exposure, however, should be mindful of regional differences in the reliability of power systems.

2. Develop emergency power outage response plans—and test them regularly

A robust, accessible plan is the best defence against disruption when an outage strikes. For small businesses, this could involve assigning clear roles and responsibilities, such as defining who contacts the utility provider, oversees staff and customer safety, manages communications, and monitors critical equipment. Businesses should consider developing detailed safety and evacuation procedures, especially for buildings with electronic locks, elevators, or areas that could become hazardous. Preparing printed emergency contact lists, protocols and checklists can be crucial should digital access be unavailable. Set up alternative connectivity, such as mobile hotspots, in advance to keep your team online if your main network fails. Make sure your plan includes a communication plan, escalation paths and regular review points.

“A power outage tests more than just your infrastructure - it reveals how adaptable and agile your people and culture are,” says John McCully, Head of Property Europe, Middle East and Africa at Zurich Insurance Group (Zurich). “Businesses that foster a mindset of preparedness and view resilience as a strategic priority are the ones that recover quickly and often find new ways to improve their operations in the process.”

 

3. Invest in backup power

Maintaining core business functions during an outage depends on the right backup solutions and checking they work. For small operations, portable generators and uninterruptible power supplies (UPS) can keep key equipment—such as lights, tills, or computers—running. Larger businesses may consider automatic backup generators, commercial battery storage, surge protectors and emergency lighting. It’s wise to test all backup systems regularly, for example, by performing brief runs and full-load tests.

“Ensure critical systems like fire alarms and carbon monoxide detectors are powered during outages, or have battery-powered alternatives,” Zurich’s McCully adds.

4. Protect data

Protecting data is equally vital. Automate regular cloud backups and, for greater resilience, use geographically distributed backup sites, if feasible. Performing regular restore tests can help ensure businesses can retrieve data quickly and completely if needed.

Emerging technologies could also help businesses make their response faster and more reliable. This could involve installing smart backup systems with automatic transfer switches and remote monitoring. Companies could consider commercial battery storage paired with renewable energy (like solar panels) for quiet, low-maintenance backup. Sensors help to monitor power quality and detect outages in real time, while cloud-based collaboration platforms support remote work during disruptions. Mass notification systems allow companies to instantly alert employees about outages and recovery steps.

5. Coordinate with suppliers and partners across your value chain

Recent countrywide disruption from power cuts in Spain and Portugal have underscored how highly interdependent we are. One potential blind spot, Saidoun says, could be assessing and addressing the resilience of the whole value chain of a business.

“Let's say you have enough backup power to continue your production. You can still work properly. But if all your stakeholders, suppliers, clients, and everyone around you, including your employees, are disconnected, there’ll still be disruption to your business,” says Saidoun of ZRS.

“Companies would need to work with the supplier as well to make sure that there's kind of a common agreement on the level of resilience when it comes to power disruption. That means making sure the steps you've taken at a company level are being taken by your supplier, too.”

Power outages are unpredictable, but your response doesn’t have to be. By knowing your risks, building a robust plan, investing in equipment and technology and mapping risks in the entire value chain, businesses can minimize disruption and maintain the confidence of their employees and customers.