Summer 2020 Volume 30, Number 3 | |||||
Most Business Policies Cover Riots, Vandalism and Civil CommotionDifferent policies cover different kinds of damage to property.
When protestors gathered on the streets of our cities to speak out against the brutal killing of George Floyd, in many instances peaceful demonstrations turned into scenes of violence, vandalism and looting. The damage done to businesses is estimated at $25 million nationwide at this point. Vehicles
Automobiles are covered under the optional comprehensive portion of an auto policy. This provides reimbursement for damage to the vehicle and its contents caused by fire, falling objects, vandalism or rioting. Buildings and Personal Property Damage to the physical plant of a business and its contents caused by fire, riots, civil commotion or vandalism is covered under virtually all Business Owners Policies (also known as BOPs), whether written as named peril or all risks policies. Damage to windows, doors, light fixtures and other items that are part of a building should be covered under the building property coverage included in the policy. Often, however, coverage for plate glass windows is sold separately. Business income coverage Businesses that are forced to suspend operations or limit hours due to rioting may have coverage for the loss of income under business income insurance — also known as business interruption. However, this is only triggered if there is direct physical damage to the premises. There may also be a waiting period, typically 72 hours, which acts as a deductible, before coverage starts. Civil Authority Coverage
However, in addition to losses arising from direct damage to your premises, business income insurance typically includes civil authority coverage as well, which provides loss of income that occurs because access to your premises has been prohibited by civil authority, such as a government entity. Access must be prohibited due to damage by a covered peril to property, not located at your premises.
Civil authority insurance covers income lost during a defined and limited time, typically four weeks. You can extend this time period by paying an additional premium. Extra Expense
Companies that incur extra expenses to continue operations while the insured premises is being repaired or replaced may be insured under the extra expense coverage provided in most property policies. Typically, this coverage is afforded for costs incurred to reduce a covered loss of business income. |
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