Today marks the eighth day of protests, which started after the death of George Floyd on May 25, 2020. Some of the protests have turned violent, with storefronts being looted and burned in major cities across the United States. Business owners are raising their concerns and uncertainty on whether or not their insurance policies will protect them if their property is damaged from the ongoing riots.
Contrary to social media speculation, most standard commercial insurance policies include coverage for physical losses due to rioting, civil commotion or vandalism. This includes both named perils and “all risk” policies. This wording extends to building, equipment, stock (inventory) and the rest of your property listed on your policy.
The amount you will be covered for will depend on whether or not you have adequate limits as part of your commercial insurance policy. Read through your insurance policy to find out exactly what you are covered for, or speak to your broker to have them walk you through the various coverage sections.
On the commercial automobile front, fire, riot, theft and vandalism all fall under Comprehensive or All Perils coverage, so be sure to review your fleet schedule to confirm that your units do have one of these coverages extended to them.
Under most policies, you will still have to pay a deductible if your property is physically damaged by rioting, so that should be considered when budgeting the cost of risk from civil unrest.
Companies that incur extra expenses in order to continue operating following a disruption from rioting may be insured under business interruption insurance. Although business interruption losses could be complicated due to ongoing COVID-19 lockdown orders, it is still important to ensure your business interruption limits reflect your operations. The best way to do this is to work with an insurance broker to complete a business interruption worksheet that helps calculate the correct limit based on your fixed & variable expenses.
Business insurance can be reviewed at any time of year, not just renewal, and we encourage policyholders to review their insurance program as market conditions change. If you would like a review of your insurance program, please don’t hesitate to reach out to us.
Fuse Insurance provides commercial insurance for businesses large and small from almost any industry. For further information or to get an online quote now, click here or contact us at 1-866-387-FUSE (3873) for more details.