How to Protect Your Business from Power Surges: Prevent Equipment Damage and Downtime

Power surges are a serious and often overlooked threat to business operations. While outages may interrupt productivity for a few hours, a power surge can silently destroy equipment, compromise data, and cost your business thousands in repairs or lost revenue.

At Risk Assured, we help businesses reduce risk and protect critical infrastructure. This guide explains what causes power surges, which systems are most at risk, and how to implement an effective surge protection strategy.

Photo by Yung Chang on Unsplash

What Is a Power Surge?

A power surge, also known as a voltage surge or transient voltage, occurs when electrical current is suddenly interrupted and then resumed, or when excess voltage flows through your system unexpectedly. This spike in energy—lasting only a fraction of a second—can overload circuits, damage sensitive electronics, and weaken electrical components over time.

What Causes Power Surges?

While lightning strikes are often blamed, most power surges are caused by more routine issues, including:

• Lightning strikes: A single lightning bolt can carry up to 300 million volts, devastating any system connected to your building's infrastructure.

• Overloaded outlets and circuits: Too many devices plugged into one outlet can cause overheating and short circuits.

• Faulty wiring: Exposed, damaged, or aging wires can trigger abnormal power flow.

• High-powered equipment: Large devices like HVAC units, elevators, and manufacturing machinery cause voltage spikes during startup.

• Local utility problems: Power grid disruptions, downed lines, and equipment failures can lead to surges.

Which Businesses Are Most at Risk?

Every business that relies on electrical and electronic equipment is vulnerable to power surges. However, some industries face a higher level of exposure:

• Manufacturing facilities using high-voltage machines and motors

• Healthcare clinics and hospitals with life-saving diagnostic and monitoring equipment

• Data centers and IT-dependent businesses reliant on servers and telecommunications

• Retail operations with point-of-sale systems and refrigeration

• Educational institutions using HVAC and lab equipment

• Multifamily and rental properties with climate control and fire alarm systems

The Hidden Risk: Daily Power Fluctuations

Power surges don’t always make headlines. In fact, small fluctuations in voltage are common in most facilities. These micro-surges often occur when:

• Office equipment is powered on and off

• High-demand devices like printers or AC units cycle throughout the day

• Power returns after an outage (a known surge risk)

While individually minor, these frequent disruptions have a cumulative effect, degrading the internal components of computers, HVAC systems, and other sensitive equipment over time.

Your First Line of Defense: A Layered Surge Protection System

Not all surge protectors are created equal. For comprehensive protection, your business needs a multi-tiered surge protection system, including:

Level 1: Service Entrance Protection

Install surge protection devices (SPDs) or arrestors where electricity enters your facility. This first line of defense protects against large external surges, such as lightning or grid fluctuations. While it won’t address internal surges, it reduces the voltage reaching internal systems.

Level 2: Distribution Panel Protection

Install SPDs on building branch circuits and electrical panels. These units safeguard lighting systems, motors, and larger devices—especially those more likely to generate internal surges.

Level 3: Point-of-Use Protection

Use surge protectors or uninterruptible power supplies (UPS) at sensitive workstations. These protect servers, desktops, telecom equipment, and other electronics from surges originating within the building.

How to Choose the Right Surge Protector

When selecting SPDs for your facility, look for the following:

• UL 1449 Certification: Only use surge protectors certified under UL’s Standard for Safety.

• Response Time: Look for SPDs that respond in nanoseconds or less.

• Clamping Voltage: The lower the voltage allowed through, the better. Aim for protectors with a clamping voltage near 120V.

• Alarm Indicators: Use SPDs with visible indicators to monitor status and performance.

• Reputable Vendors: Avoid counterfeit equipment. Choose suppliers with at least 10 years of experience and a proven safety record.

Surge Protection Is Smart Risk Management

Although not legally required by OSHA, surge protection is a cost-effective risk reduction strategy that can prevent thousands of dollars in business losses. Without it, your company risks:

• Equipment damage and replacement costs

• Downtime and lost productivity

• Data loss and business disruption

• Void insurance claims due to preventable damage

Final Thoughts: Don’t Wait Until It’s Too Late

Power surges are unpredictable—but your response doesn’t have to be. By implementing a layered surge protection plan and maintaining your electrical infrastructure, you’ll reduce the chance of catastrophic equipment failure and business interruption.

At Risk Assured, we help businesses of all sizes protect their property with tailored surge protection and electrical risk mitigation plans.

Contact us today to schedule a commercial surge risk assessment or to get help building a multi-level protection strategy.