RIOTS , VANDALISM AND CIVIL UNREST
• The civil authority clause — Most business interruption policies also include a civil authority clause , which can offer compensation when an action or order of civil authority temporarily prevents or restricts access to the insured premises — forcing the affected business to either limit hours or halt operations altogether . Although this clause still requires a physical loss or property damage to occur in order to be triggered , the damaged property does not necessarily have to be owned by your business — it typically just needs to occur within a set distance of your operations .
• Extra expense insurance — This type of policy can provide coverage for additional expenses that result from continuing business operations while the insured premises is being repaired or replaced due to a physical loss or
property damage that was incurred by a covered peril . This might include costs such as the added expense of shipping necessary business supplies overnight rather than at the standard delivery rate in order to resume operations as soon as possible .
BEST PRACTICES WHEN MAKING A CLAIM
If riots , vandalism , or civil unrest take place within your community and result in losses for your business , consider these best practices when making a claim :
• Report it immediately — Be sure to report the incident right away to the local authorities and consult your broker for immediate claims assistance .
• Prevent additional losses — When the loss occurs , try to do everything you can to mitigate the risk of further damages ( e . g ., boarding up your property ’ s
windows and doors ). However , only take these precautions if it is safe to do so . Avoid any mitigation measures that could put you or your employees at risk of injury or fatality .
• Beware of waiting periods — Make sure you consider any waiting periods or other deductibles that might apply when making a claim . For example , most business interruption policies are subject to a 72-hour waiting period — meaning that you won ’ t be covered for any loss of income that occurs for the first three days following the incident .
• Document all expenses and damages — To ensure the best possible compensation for your loss , be sure to document the full extent of the damages that your business incurred by taking plenty of pictures as evidence . Further , make sure you keep track of all expenses related to the loss by saving receipts and bank statements . +
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