In recent years, civil unrest has led to many communities facing riots and looting, creating millions of dollars in damage. Broken windows and stolen inventory have set back many small businesses affected by raging events. In some cases, law enforcement officials have put restrictions on areas due to violence. Here’s what business owners should know about business insurance coverage pertaining to vandalism and looting.
Commercial Property Coverage for Looting
A commercial property insurance policy covers various types of damage to your assets. It pays for losses from protest rallies that lead to vandalism, looting, and theft. Your policy should cover any type of damage due to civil unrest, but to be sure, you should talk with your insurance agent.
Business Owner’s Policy for Looting
Many small companies commonly choose a Business Owner’s Policy (BOP) for business insurance coverage. It essentially combines commercial property insurance with business liability insurance at a lower cost than buying each policy separately. A BOP policy may also include business interruption insurance, which provides coverage in case law enforcement officials show up to handle a riot and shut down the block.
Business Interruption Insurance and Looting
There are various disasters that can shut down a business, including looting on your block. Business interruption insurance pays owners for lost revenue and workers for lost wages. This coverage only applies to riots, however, if your property has been damaged by the commotion.
Authorities such as police or the fire department might enforce a shutdown or limitations on your operation that reduce revenue. Be aware that civil authority provisions of an insurance policy cover business downtime only within a certain time frame, such as a month. But if the civil unrest continues near your establishment, you can extend coverage at an extra cost.
How to Report the Damage Resulting from Looting?
If your business has been attacked by rioters or looters, you should report the incident immediately to local authorities and your insurance company. Within the next few days, you should do a thorough inspection of the damage, take photos and report the details to your insurer. The more evidence you gather about the incident, the stronger your claim will be. Include a copy of the police report with your claim.
Wondering About Your Home? Get Yourself the Right Insurance!
Homeowners, like business owners, are also protected financially from vandalism and looting via their standard homeowners insurance policy. A standard policy covers a wide range of damage beyond the homeowner’s control. You’ll pay a lower monthly premium if you reside in a low-crime zip code or live near a fire station.
You can also lower your insurance rates as a homeowner if you invest in technology that reduces and deters criminal activity. Installing video surveillance cameras and an alarm system sends a signal to criminals to stay away or be exposed. The same is true with a business. Ask your insurer about other ways you can lower your premiums and risks of vandalism or theft.
Protect Yourself with the Right Homeowners Insurance at McCarty Insurance!
Securing the right business insurance coverage is crucial to minimizing risks and losses. Most businesses are already covered for vandalism and looting. Find out if you have all the coverage you need. Contact our experts here at McCarty Insurance today to learn more about a customized insurance plan for your business.