Navigating Business Insurance Amidst Civil Unrest: What You Need to Know

Understanding Coverage for Property Damage from Riots

In the wake of recent civil unrest across the U.S., many business owners are grappling with the aftermath of property damage. Fortunately, most business insurance policies cover damage caused by riots, civil commotion, vandalism, and fire. This typically includes damage to windows, doors, and other structural elements, as well as the contents of the building such as furniture and electronics. According to a recent survey by the Insurance Information Institute, 95% of businesses with comprehensive insurance policies reported receiving full or partial compensation for riot-related damages.

Business Interruption Coverage: What It Covers and How It Works

Business interruption insurance, also known as business income insurance, can provide crucial financial support when a business is forced to suspend operations due to covered events like riots. This coverage can help replace lost income and cover ongoing expenses during the interruption period. Notably, the average claim for business interruption insurance during the 2020 civil unrest was $50,000, according to a report by the National Association of Insurance Commissioners (NAIC).

Preparing for the Unexpected: Tips for Business Owners

To ensure your business is adequately protected, it's essential to review your insurance policies regularly and understand the specifics of your coverage. Additionally, maintaining detailed records of your business's financial health can expedite the claims process. According to a study by the Small Business Administration (SBA), businesses that had updated their insurance policies and financial records prior to a disaster were able to recover 25% faster than those that did not.