Yes, a standard business insurance policy covers riots and looting. There are a diverse number of business insurance plans that offer coverage for property damage in the event of a civil unrest, riot, looting, or vandalism.
They also cover other types of damage incurred during the period of the commotion in the area where your business is situated, such as damage caused by civil authorities during intervention.
Additionally, if your business is forced to close temporarily as a result of riots, looting, or vandalism and you have a business insurance plan in place, you will be adequately covered by your insurer. Your insurance company will pay for all damage done to your business as a result of the social crisis.
However, it is important to note that your insurance company will only reimburse up to the limit of your policy. This means that they will only pay for the damages depending on what your policy covers and the deductible you selected.
What is Business Insurance?
A business insurance policy is typically designed to cover physical damage that affects a business and the structures that keep it running. Whether the damage was caused by riot, looting, fire, or vandalism, a standard business owner’s policy should cover the expenses associated with keeping the business running.
If you are unable to continue your business operation or shut down completely as a result of riots and looting, your policy may offer loss of income coverage under business income or interruption insurance.
What About Loss of Income in the Event of Riot or Looting?
The aftermath of civil unrest leaves most business owners devastated because the cost of repairing damaged properties is often overwhelming.
If your business suffers loss of income in the event of riots and looting and you are unable to operate your business the usual way, your business income or interruption insurance policy should offer coverage for loss of income.
Loss of income coverage typically protects policyholders in the event of a civil unrest that results in severe damage to the overall operation of the business.
Your insurance company will pay for the repair of your business store and reimburse you for the income lost during that period.
How to Use Your Business Insurance Coverage for Riots and Looting
If there’s ever a civil unrest that leads to looting or goods and riots in the community and you are badly affected, consider these tips:
- Read your policy: The first thing you need to do before filing a claim is to carefully read your insurance policy to confirm if it covers rioting and looting. If you are still unclear of what the policy covers, you can reach out to your insurance provider or an agent that would help in breaking down the coverage and limitations of your policy.
- Document the damage: By documenting the damage, we mean, you should take photos and videos of the damaged property and items caused by the civil unrest. This will serve as evidence when filing a claim with your insurance company. You can as well keep receipts or expenses that were taken care of out-of-pocket so you can be reimbursed by your insurer.
- Report claims immediately: If your policy covers rioting and looting, it is advisable to report claims to your insurance company as early as possible. This is to ensure that the claim is processed and approved quickly.
- Employ precautionary measures: To prevent further damages, there are certain things you need to put in place after the incident. You can start by securing your inventory and fixing shattered windows or doors to prevent other damages. Although this is temporary, it goes a long way in mitigating several risks.
FAQs
Is loss of income covered by business insurance policy?
Yes, most insurance companies offer loss of income coverage under a BOP. If you are unable to continue the day-to-day activities of your business or operate the normal way as a result of damages done to your business, your policy should cover you.
It is important to note that loss of income coverage only applies to a situation where your business suffers direct physical damage within the site of the civil unrest.
Does business insurance cover proper damage resulting from riots?
Unfortunately, a standard business insurance policy does not pay for the property damage caused by riots or looting.
However, your business insurance policy may offer loss of income coverage in the event of a physical damage that prevents you from running your business the usual way.
To file a claim for loss of income, reach out to your insurance company and request more information on what your policy covers and how you can go about the claim process.
