Are Riots, Vandalism, or Looting Covered by Business Insurance?
After being closed for nearly two years due to pandemic-induced lockdown, businesses have now reopened with limited employees and some restrictions concerning safety precautions. However, they still cannot work with peace of mind because of the recent events of vandalism, looting, and riots from protests.
Business owners are concerned about what if their property or inventory is damaged or lost due to such incidents. Actually, they don’t have to worry about these incidents, as business insurance will cover them, provided they have specific coverages. Do you know what they are? Read more to find out.
Coverages You Need to Stay Protected Against Riots, Vandalism, or Looting
Business Property Coverage
Business property coverage (both named perils basis and open perils basis) protects your commercial building and properties stored on it and its premises against riots, vandalism, and looting.
It covers broken glass windows and physical damage to buildings, such as fire and water damage. However, some policies may exclude coverage for plate glass windows without additional payment or endorsement.
Business Auto Coverage
A commercial auto policy with comprehensive coverage protects company-owned vehicles if they are damaged or destroyed in the event of riots or vandalism. You can get reimbursements for damages, such as glass breakage, body damage, and any other damage caused by fire.
However, this coverage will take depreciation into account during reimbursements, so you will be compensated for the market value of the vehicle, not the full cost of a new vehicle.
Business Interruption Coverage
It covers income loss if physical damage from vandalism, looting, or riots makes your business unable to operate temporarily. Interruption coverage also pays for continuing operating expenses, such as employee salaries, rent, utility bills, etc.
Business Owner’s Policy (BOP)
Bundling liability, interruption, and property coverages in one policy, BOP covers property damage and loss of income caused by riots, looting, or vandalism.
Should I Use Force to Protect My Business Property for Insurance Purposes?
No, business property insurance providers don’t require business owners to use force to protect or defend their commercial buildings. You will be reimbursed for losses and damages to your property caused by riots, vandalism, or civil commotion, even if you don’t use force to safeguard it.
However, if you have an increased risk or threat of property damage, take some preventive measures, such as locking your doors properly, installing security devices, and boarding up windows to protect your property.
What to Do If My Business Was Looted, Damaged, or Destroyed
Business owners faced with property damage following looting, vandalism, or riots should follow these steps to make their claims-filing process easier:
Contact the local law enforcement to report the incident. Contact your insurance company to keep them informed about the loss. They will help you with paperwork and additional forms you have to complete to initiate your claim.
If it is safe, take precautionary measures to prevent further damage to your property, such as boarding up broken windows to safeguard undamaged property from wind or rain.
Take photographs and write notes concerning the property damage and stolen merchandise. Provide these to your insurance provider to assess the value of a loss.
Keep records of expenses you incur to restart operations, including renting a temporary space, buying temporary equipment, and debris removal costs.
Protect Your Business with Club Agency
At Club Agency, we offer comprehensive business insurance coverage to have you covered against all possible risk exposures, including riots, vandalism, and looting. Contact our insurance agents today if you have any questions about your coverage.