Just as businesses are preparing to reopen after months of COVID-19– related closures, a wave of rioting and destruction has washed across many cities. Many business owners now have to contend with property damage, theft and vandalism that may delay reopening and necessitate costly repairs, on top of the drastic financial strain already imposed by COVID-19. To make matters worse, retailers like the ones hit especially hard by looting were already being hit especially hard by the COVID-19 pandemic.
Will insurance cover these new rioting losses? In many cases, yes. If your business was damaged and/or ordered to close as a result of the current unrest, keep these four points in mind.
1. Riot-related losses may be covered by your property insurance policies.
Standard property insurance policies cover property damage caused by rioting, civil commotion or vandalism. These causes of loss are typically insured in both all-risk property policies and policies that cover specified named perils. While insurance policies may contain provisions excluding or limiting coverage for war, military action, terrorism or civil insurrection, the vandalism and looting giving rise to new losses should not be...