Most commercial insurance will cover riot damage, experts say

Experts say that most commercial insurance policies will indeed cover damage businesses suffered to their premises during the recent riots, up to and including damage caused by looting, fire, or interruption of business caused by rampaging mobs.

These same experts said that a select number of business insurance policies will also provide cover for those companies that did not sustain any direct damage but who felt the after effects of the riots by having their trade affected in a negative manner.  Business owners who have business liability insurance are recommended to contact either their insurance brokers or insurers at the first available opportunity.

Even businesses that are not insured or do not have enough insurance to cover their damages or losses have some recourse under the Riot Damages Act, a statute that may compensate you for your loss.  The deadline for a claim to be made against the Riot Damages Act is a total of 42 days after the day the damage was sustained, so the clock is ticking.

Designed to protect shops, houses, and other businesses and the contents within these buildings, the Act has a provision for the payment of compensation for theft, destruction, or injury caused by anyone that was involved in a riot in the UK.  There are some limitations to the Act, however, as not only will claims only be eligible if the cause of the damage or loss can legally be defined as riot activity, the Act does not extend its compensation for any theft of or damage done to a car, van, lorry, or any other type of vehicle unless it was within a garage or otherwise located within a building of some sort.

The Act will also not pay out for a non-material loss such as an interruption to trading, and it will also not pay out on personal injuries.

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