Does Business Insurance Cover Riots And Looting

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By Dzhingarov

It is prudent for every business to have business insurance. Many businesses are legally required to hold specific types of insurance, and there are insurance packages for things like car insurance that are tailored for the needs of businesses rather than individuals. But even if your business isn’t obligated to secure a specific type of insurance, there are still plenty of different types of business insurance out there, and just about every business could benefit from having at least one of them.

The current protests that are engulfing the United States show how unpredictable the world can be and demonstrate the benefits of being prepared for the unexpected. Insurance is all about mitigating your risk and protecting you and your business financially. If you are waiting until calamity befalls you before you sort out your insurance, you’re doing it wrong!

Given the unprecedented nature of current events, now is a good time to take a look at a question that most American business owners would never have thought to ask before – does business insurance cover riots and looting?

Does Business Insurance Cover Property Damage?

Weather business insurance will cover property damage in the event of riots and looting will depend on the specific policy that you have purchased. In general, the more common forms of insurance policies that small businesses usually buy will offer a general form of property insurance. Most of these insurance policies will cover any damages that occur as a result of riots or other criminal activities.

Insurance policies that cover damage caused by rioting and looting will name the specific perils in the policy itself. Do you want to be certain as to whether your business insurance will cover property damage, then you need to check the exact wording in your policy. If you are still unsure, then consult with your insurance provider.

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What About Inventory Losses?

It isn’t just the physical building that your business is located in that can be damaged by rioting and looting. There is also the potential for damage to occur to the inventory within. In general, insurance policies that cover property damage will also include coverage for any contents inside the property provided that the cause of the damage is some form of civil unrest.

Some policies, although not all, will also provide you coverage for loss of income that arises because of damage to your business property. You will have to check the details of your policy to see if this kind of coverage is provided.

My Business Is Uninsured, What Insurance Do I Need To Protect Myself?

If your business is not legally required to have any specific business insurance, then you may well still be uninsured. Of course, given recent events, lots of businesses are now reconsidering their decision to forgo business insurance and are in the market for something to protect themselves.

General liability insurance and property insurance are the two most common kinds of insurance for protecting a business against potential damage, loss, or theft.

What Should I Do If My Business Is Damaged?

If your business or any of the inventory is damaged by the protest, then you should immediately contact your insurance provider to find out whether they will cover the damages. If your business is put out of commission completely for a while, then there is a range of protest relief organizations across the United States that are aiming to provide some financial relief to small businesses impacted by the protests. While the protesting does have the broad support of the small business community, there are some small businesses that are being seriously impacted by the actions of the minority of protesters.

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The current situation in the US and around the world is unprecedented. The year 2020 has been unprecedented in general, but it is indicative of the seriousness of the current situation that the ongoing protests stand out even in a world that is still pre-occupied with a global pandemic. For small business owners that have previously not had to worry about their businesses being caught in the crossfire of civil unrest, the sudden shift in the atmosphere has been difficult to adjust to. Having the right business insurance place will at least protect you financially to some extent.