Does Business Insurance Cover
Riots And Looting?

Civil unrest, riots and looting business insurance is a type of insurance that protects businesses from financial losses caused by events such as riots, looting, civil unrest, or other acts of violence that may occur during a protest or other public disturbance.

This type of insurance can provide coverage for damages to the physical structure of the business, as well as loss of income and business interruption. It also covers the cost of repairing or replacing stolen or damaged property, and can provide compensation for medical expenses incurred by employees or customers who are injured during the event.

This insurance can be purchased as a standalone policy or as an endorsement to a general liability policy.

While most commercial and even some homeowner's insurance policies will cover the cost of damages or losses that occur as a result of civil unrest, as mentioned, coverages do vary.

Physical damage to homes, businesses, and vehicles resulting from civil unrest will be typically covered by insurance policies - unless there are specific exclusions or additional coverage requirements.

In general property insurance policies generally cover damage to a business' doors, lighting fixtures, windows (option on most policies) and contents. Business contents can include; furniture, office supplies, machinery and computers, and the cost of boarding up broken windows and securing the business from further damage.

Commercial Property Policy

If you already have a standard commercial property insurance policy in place and your business has been damaged or becomes damaged as a result of arson, violence, vandalism and burglary of businesses, your policy will help to cover the costs.

For example, if your windows have been shattered, the exterior of your property has been vandalized, or anything inside of your property has been damaged or stolen (computers, inventory, office furniture, etc.), you can file a claim with your carrier.

Business Owners Policy

Most business owner's policies (BOP), which combine general liability, property, and business interruption coverage into a single policy, will cover any damages that the physical structure of your commercial property sustains, as well as the contents within it, in an act of rioting or looting.

It may also cover any income that you may lose if you are forced to adjust your hours of operation or close down by authorities, or you have to close down in order to make repairs.

Business Interruption Insurance

Part of a commercial property insurance, a business interruption insurance policy (also known as a business income insurance policy) will help to cover any income that you may lose if authorities force you to adjust your hours of operation or close as a result of rioting and looting, or if you have to close down in order to make repairs to your business.

Commercial Auto Policy

If a business' cars or trucks are damaged or destroyed, if they have a business auto policy with comprehensive coverage, most vehicle damage should be covered.

Workers Compensation Policy

If any of your employees are injured in an act of vandalism or civil unrest while they're on the job, a workers' compensation policy can cover any medical care that they may need, as well as compensate them for any time off they may require while they're recovering or while your business is shut down.

Homeowners Policy

If you operate your business out of your home, your homeowner's insurance policy and your property is damaged or your inventory is damaged or stolen in an act of rioting, looting, or vandalism, your coverage may help to pay for the damages; however, it will depend on the specifics of your business and your homeowner's insurance policy.

The best way is to read your policy then contact your broker, agent or insurance carrier to find out exactly what your policy will cover if you have been victimized by rioting and looting.

Make sure that you ask for specific details regarding your policy, including the type of damages that are covered, how much you will be compensated, and what you will need to do in order to file a claim.

Following are tips on the best way to file claims for damages resulting from civil unrest, looting and rioting from the American Property Casualty Insurance Association:

• Read your policy: Business interruption coverage can vary, so it is important to talk with your agent, broker or insurer to ensure you understand your policy coverages.
• Report your claim promptly: It is very important for policyholders to report their claims to their insurer as soon as possible, so the claims handling process can begin.
• Document the damage: Take pictures or video of the damage and preserve any property that may have been destroyed, so the insurance adjuster can look at the damaged property. Attach documentation with claims reports.
• Prevent further damage: Check for safety hazards when it is safe to do so. Board up broken windows or make other temporary repairs. Do not attempt to make permanent repairs on your business until an insurance adjuster has inspected the property.
• Work only with reliable professional repair contractors: Ask for and verify references and contact police, chambers of commerce or Better Business Bureaus for complaint information involving a contractor. Your insurance company may have referral options for contractors.
• Hire a professional cleaning service for your place of business: If you or your employees are involved in cleanup efforts, use safety items such as proper eyewear, gloves, hardhats, dust masks and respirators.
• Save receipts: Policyholders should keep receipts for expenses incurred for any repairs made on a temporary basis to protect the property from further damage or to restore operations.