We all watched many cities and businesses damaged or destroyed by recent riots. Many businesses were lost and it caused us to think about how commercial property insurance applies to riots.
We hope this never happens to any community, but it is always good to be informed and prepared in the event of any situation. There are two questions to consider. One; does my business property insurance cover riot damage? Two; will coverage apply if the fire department stops fighting the fire due to safety concerns?
Are Riots A Covered Loss?
Generally speaking, damage to your building and other property due a riot is a covered peril. This would include fire, theft, and vandalism. If you were forced to close your business by civil authority but had no building damage you may be able to collect for lost revenue, depending on how your policy is written. Remember each policy is unique, so call our office for a review.
What If The Fire Department Refuses To Put Out The Fire?
Insurance companies generally will not deny a claim because the fire department pulled back for safety reasons. If civil authorities limit or restrict access to a burning building, your insurance will not be jeopardized.
Business insurance is designed to protect your business from accidents and other unforeseen events. Many of the damaged businesses had insurance, and those that did not will most likely have to close their doors.