Business Interruption Riot Insurance Claims – the recent riots in various parts of the UK have left many business owners facing significant challenges, including physical damage to property, lost income, and operational disruptions. If your business has been affected by these events, it’s crucial to understand the interruptions covered under riot insurance policies and the steps you need to take to make a successful claim.

Business Interruption Riot Insurance Claims

To make successful business interruption riot insurance claims you will need to fulfil certain conditions. Let’s look at what is required and clarify exactly what we mean by ‘riot insurance’.

What is Riot Insurance?

Riot insurance is a specific type of coverage included in many commercial insurance policies, designed to protect businesses from losses caused by civil disturbances such as riots, protests, and looting. This insurance typically falls under the broader category of business interruption insurance, which compensates for lost income and additional expenses that arise when a business is unable to operate normally due to a covered event.

Types of Business Interruption Riot Insurance Claims Covered

1. Loss of Income Due to Physical Damage

The most straightforward type of coverage under riot insurance is for income lost due to physical damage to your business premises. If your property has been damaged during the riots, and as a result, you are unable to continue business operations, your policy may compensate for the lost income. This coverage usually kicks in when the damage occurs and continues until your business can resume normal operations.

2. Civil Authority Provisions

During riots, local or national authorities may impose curfews, restrict access to certain areas, or mandate the closure of businesses to maintain public safety. If your business cannot operate due to such government actions, the civil authority provision in your insurance policy may provide compensation. This is particularly relevant if your business was not directly damaged but was forced to close due to official orders.

3. Denial of Access

Sometimes, even without direct damage to your property, access to your business premises may be blocked due to nearby disturbances. This could be due to police cordons, roadblocks, or other security measures. Denial of access coverage, which may be included in your business interruption policy or as an add-on, covers lost income resulting from these situations.

4. Non-Damage Business Interruption

While less common, some policies include coverage for interruptions that don’t involve physical damage to your property. For instance, if riots cause supply chain disruptions or deter customers from visiting your business, you might still face significant income losses. Non-damage business interruption coverage can help mitigate these indirect effects, though verifying if your policy includes this provision is essential.

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Steps to Take When Making Business Interruption Riot Insurance Claims

Follow these steps when making a riot insurance claim;

• Review Your Policy: Begin by thoroughly reviewing your business insurance policy to understand the specific types of coverage you have. Pay close attention to the exclusions and any optional provisions you might have purchased.
• Document the Damage: Take detailed photographs and videos of any physical damage to your property. Collect records of any lost income and additional expenses incurred due to the interruption of your business operations.
• Notify Your Insurer Promptly: Report the damage to your insurer immediately. Many policies have strict deadlines for filing claims, so prompt notification is crucial.
• File a Claim with the Riot Compensation Act (RCA) 2016: Under the Riot Compensation Act 2016, you may be entitled to compensation from the government for damages caused by riots. This is separate from your insurance claim and can cover aspects not included in your commercial policy. Claims must be submitted within 42 days of the incident to qualify, with detailed evidence of losses.
• Consult with a Professional: If you need clarification on the extent of your coverage or how to navigate the claims process, consider consulting with an insurance broker or a legal professional specialising in insurance claims.

Conclusion – Business Interruption Riot Insurance Claims

Business Interruption Riot Insurance Claims – The aftermath of a riot can be devastating for businesses, but understanding your insurance coverage and the steps to take can significantly ease the recovery process. Ensure that your business interruption insurance is up-to-date and comprehensive, covering all potential risks associated with civil disturbances. Being proactive and informed can safeguard your business against the unpredictable impacts of riots and similar events.

Refer to the UK government’s official guidelines for more detailed guidance on claiming under the Riot Compensation Act 2016.

We Can Help

Oakleafe Claims have represented policyholders and managed their insurance claims since before the First World War. We have vast expertise and experience in both domestic and commercial insurance claims, including riot claims, with thousands of satisfied policyholders who have received their deserved insurance settlement. With no upfront fees required, our internal data shows that insurance claims managed by professional loss assessors like Oakleafe can expect a settlement up to 40% higher than claims managed by the policyholder.

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