Civil Unrest, Riots & Looting Business Insurance Information
Does Business Insurance Cover Riots And Looting?. As peaceful protestors take to the streets to demand justice, unfortunately, tensions can run high and those who have ill-intentions can get into the mix and spark anarchy.
Whether your business has been affected by the recent bouts of civil unrest that have resulted in rioting and looting or you're worried that your business could become the next business that's affected by heinous destruction, you're probably wondering if insurance will cover the cost of any damage that has already occurred or that could occur.
So does business insurance cover riots and looting? In short, yes, most standard commercial insurance policies will cover the cost of damage that is associated with looting, rioting, and vandalism. This includes any destruction or theft that is caused by civilians, as well as damages that are caused by the actions of public safety authorities, such as the police and National Guard, may take in an attempt to quell civil unrest.
However, it is important to note that coverage does vary and depends on the specifics of your policies and your carrier. Let's take a closer look at how commercial insurance covers the damages for such events and what type of policies you may need to purchase to ensure your business is properly protected.
Does business insurance cover riots and looting? The answer is usually yes, if the business has purchased the right commercial property coverages.
Below are answers to common coverage questions about does business insurance cover riots and looting?:
- Does My Insurance Policy Cover Losses Due To Rioting And Looting?
- What Type Of Commercial Insurance Policies Cover Rioting And Looting?
- How Can I Find Out If My Insurance Policy Covers Losses Due To Rioting And Looting?
- What Is The Best Way To Handle A Claim For Losses Caused By Rioting And Looting?
Does My Insurance Policy Cover Losses Due To Rioting And Looting?
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.
What Type Of Commercial Insurance Policies Cover Rioting And Looting?
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.
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.
How Can I Find Out If My Insurance Policy Covers Losses Due To Rioting And Looting?
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.
What Is The Best Way Handle A Claim For Losses Caused By Rioting And Looting?
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.
Does Business Insurance Cover Riots And Looting? - The Bottom Line
After speaking with your carrier and finding out exactly what your policies do carry, you may want to invest in additional commercial coverage to ensure that your business, your employees, and you are properly protected.
Additionally, if commercial insurance isn't required for your specific type of business, investing in coverage could be a sound investment. Speak with a reputable agent that specializes in commercial insurance to find out what types of policies could protect your business in the event that you are impacted by civil unrest, rioting and looting.
Types Of Small Business Insurance - Requirements & Regulations
Perhaps you have the next great idea for a product or service that you know will appeal to your local area. If you've got a business, you've got risks. Unexpected events and lawsuits can wipe out a business quickly, wasting all the time and money you've invested.
Operating a business is challenging enough without having to worry about suffering a significant financial loss due to unforeseen and unplanned circumstances. Small business insurance can protect your company from some of the more common losses experienced by business owners, such as property damage, business interruption, theft, liability, and employee injury.
Purchasing the appropriate commercial insurance coverage can make the difference between going out of business after a loss or recovering with minimal business interruption and financial impairment to your company's operations.
Insurance is so important to proper business function that both federal governments and state governments require companies to carry certain types. Thus, being properly insured also helps you protect your company by protecting it from government fines and penalties.
Small Business Insurance Information
In the business world, there are many risks faced by company's every day. The best way that business owners can protect themselves from these perils is by carrying the right insurance coverage.
The The National Association of Insurance Commissioners (NAIC) is the U.S. standard-setting and regulatory support organization. Through the NAIC, state insurance regulators establish standards and best practices, conduct peer review, and coordinate their regulatory oversight.
Commercial insurance is particularly important for small business owners, as they stand to lose a lot more. Should a situation arise - a lawsuit, property damage, theft, etc. - small business owners could end up facing serious financial turmoil.
According to the SBA, having the right insurance plan in place can help you avoid major pitfalls. Your business insurance should offer coverage for all of your assets. It should also include liability and casual coverage.
Types Of Small Business Insurance
Choosing the right type of coverage is absolutely vital. You've got plenty of options. Some you'll need. Some you won't. You should know what's available. Once you look over your options you'll need to conduct a thorough risk assessment. As you evaluate each type of insurance, ask yourself:
- What type of business am I running?
- What are common risks associated with this industry?
- Does this type of insurance cover a situation that could feasibly arise during the normal course of doing business?
- Does my state require me to carry this type of insurance?
- Does my lender or do any of my investors require me to carry this type of policy?
A licensed insurance agent or broker in your state can help you determine what kinds of coverages are prudent for your business types. If you find one licensed to sell multiple policies from multiple companies (independent agents) that person can often help you get the best insurance rates, too. Following is some information on some of the most common small business insurance policies:
|Business Insurance Policy Type||What Is Covered?|
|General Liability Insurance||What is covered under commercial general liability insurance? It steps in to pay claims when you lose a lawsuit with an injured customer, employee, or vendor. The injury could be physical, or it could be a financial loss based on advertising practices.|
|Workers Compensation Insurance||What is covered under workers compensation insurance? This type of insurance protects a business and its owner(s) from claims by employees who suffer a work-related injury, illness or disease. Workers comp typically provides the injured employee with benefits to cover medical expenses, a portion of his/her lost wages, rehabilitation costs if applicable, and permanent partial or permanent total disability.|
|Product Liability Insurance||What is covered under product liability insurance? I pays an injured party's settlement or lawsuit claim arising from a defective product. These are usually caused by design defects, manufacturing defects, or a failure to provide adequate warning or instructions as to how to safely use the product.|
|Commercial Property Insurance||What is covered under business property insurance? General liability policies don't cover damages to your business property. That's what commercial property insurance is for. It protects all of the physical parts of your business: your building, your inventory, and your equipment, giving you the funds you need to replace them in the event of a disaster. If you work from home, you might consider a Home Based Business Insurance policy instead.|
|Business Owners Policy (BOP)||What is covered under a business owners policy (BOP)? This is a policy designed for small, low-risk businesses. It simplifies the basic insurance purchase process by combining general liability policies with business income and commercial property insurance.|
|Commercial Auto Insurance||What is covered under business auto insurance? This type of insurance covers automobiles being used for business purposes. This could include a fleet of business-only vehicles or a single company car. In some cases it might cover your car or your employee's car while they're being used for business. These policies have much higher limits, ensuring you can cover your costs if one of these vehicles gets into an accident.|
|Commercial Umbrella Policies||What is covered under commercial umbrella insurance? This type of policy is a sort of "gap" insurance. It covers your liability in the event that a court verdict or settlement exceeds your general liability policy limits.|
|Liquor Liability Insurance||What is covered under liquor liability insurance? It covers bodily injury or property damage caused by an intoxicated person who was served liquor by the policy holder.|
|Professional Liability (Errors & Omissions)||What is covered under professional liability insurance? This type of business insurance is also known as malpractice oe E&O. It covers the damages that can arise from major mistakes, especially in high-stakes professions where mistakes can be devastating.|
|Surety Bond||What is covered under surety bonds? Bonding is a contract where one party, the SURETY (who assures the obligee that the principal can perform the task), guarantees the performance of certain obligations of a second party, the PRINCIPAL (the contractor or business who will perform the contractual obligation), to a third party, the OBLIGEE (the project owner who is the recipient of an obligation).|
Who Needs General Liability Insurance? - Virtually every business. A single lawsuit or settlement could bankrupt your business five times over. You might also need this policy to win business. Many companies and government agencies won't do business with your company until you can produce proof that you've obtained one of these policies.
Business Insurance Required by Law
If you have any employees most states will require you to carry worker's compensation and unemployment insurance. Some states require you to insure yourself even if you are the only employee working in the business.
Your insurance agent can help you check applicable state laws so you can bring your business into compliance.
Other Types Of Small Business Insurance
There are dozens of other, more specialized forms of small business insurance capable of covering specific problems and risks. These forms of insurance include:
- Business Interruption Insurance
- Commercial Flood Insurance
- Contractor's Insurance
- Cyber Liability
- Data Breach
- Directors and Officers
- Employment Practices Liability
- Environmental or Pollution Liability
- Management Liability
- Sexual Misconduct Liability
Whether you need any or all of these policies will depend on the results of your risk assessment. For example, you probably don't need an environmental or pollution policy if you're running an IT company out of a leased office, but you would need data breach and cyber liability policies to fully protect your business.
Also learn about small business insurance requirements for general liability, business property, commercial auto & workers compensation including small business commercial insurance costs. Call us (855) 767-7828.
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Get useful tips and information about how much commercial insurance costs, small business risks and exposures, how insurance regulations effect your businesses' and detailed descriptions of coverages and exclusions and more. Most small businesses need to buy the following four types of insurance at a minimum to cover their operations from every day risks:
Property Insurance: This policy covers a business if the property used in the business is damaged or stolen as the result of common perils like fire or theft. Commercial property insurance covers the buildings, structures and also business personal property - which includes furniture, inventory, raw materials, machinery, computers and other items.
Liability Insurance: Any company can be sued. Slip-and fall lawsuits are very common and be costly. Customers can claim you injured them or damaged their property - and lawsuits are very expensive. Commercial liability insurance pays damages and can include attorney's fees and other legal expenses. It also ca pay for the medical bills of injured third parties
Commercial Auto Insurance: For vehicles owned by the business. Commercial auto insurance pays bodily injury or property damage costs for which the business is found liable - up the the policy limits for liability and property damage.
Workers Compensation Insurance: In almost every state employers must provide workers comp when there are W2 employees. Workers compensation pays for the medical care of employees and can replace a portion of lost wages - regardless of who was at fault for the injuries.