RIOTS , VANDALISM AND CIVIL UNREST
INSURANCE CONSIDERATIONS
FOR RIOTS , VANDALISM AND CIVIL UNREST
Riots , vandalism , and civil
unrest can create unique challenges for business owners — resulting in stolen , damaged , or defaced goods and extensive property damage . That ’ s why it ’ s crucial to secure proper commercial insurance coverage to adequately protect your business in the event that such a situation occurs within your community .
Review the following guidance for an outline of various insurance solutions that can offer compensation for losses related to riots , vandalism , and civil unrest , as well as best practices to consider when making claims in these situations .
COVERAGE FOR RIOTS , VANDALISM , AND CIVIL UNREST
The following forms of commercial
insurance coverage can provide protection in the event that your business suffers a loss related to riots , vandalism , or civil unrest :
• First-party property insurance — This form of coverage can offer compensation for physical losses or property damage to the insured premises and contents . Losses caused by riots , vandalism , or civil unrest are typically covered on both “ named peril ” and “ all risk ” commercial policies . However , be sure to review your policy to ensure it doesn ’ t exclude these situations . Keep in mind that your policy might utilize different terminology for these situations ( e . g ., “ civil commotion ” as opposed to “ civil unrest ,” or “ riots ” and “ malicious mischief ” as opposed to “ vandalism ”). Make sure you understand all policy definitions .
• Business interruption insurance — This type of policy ( also known as
business income insurance ) can provide coverage for loss of income that results from having to temporarily halt business operations to recover from a physical loss or property damage to the insured premises . For your policy to be triggered , the halt of business operations must be directly caused by a physical loss or property damage that was incurred by a covered peril — such as a vandal smashing your property ’ s windows with a brick . In addition , some insurers might not allow your policy to be triggered unless the physical loss or property damage results in a “ complete and total ” halt of business operations . This means that if the physical loss or damage only affects some of your operations — but not all — you might not be covered . With this in mind , be sure to review your policy wording to understand the full extent of your coverage .
30