Riot Recovery for Affected SMEs

In the wake of widespread civil unrest, which left small businesses in several British cities cleaning up the mess, Government ministers are urging insurance companies to accelerate payouts. The property damage to retail businesses across England and Northern Ireland has left many SMEs needing financial support.

Government Pushing for Payouts

Business Secretary Jonathan Reynolds has taken the lead in pushing for swift action. He recently urged the Association of British Insurers (ABI) to ensure businesses receive the compensation they’re entitled to as quickly as possible. Reynolds claimed many SME owners are uncertain about their insurance coverage and unaware of the help available.

The ABI has responded positively, indicating its commitment to collaborating with its members and the Government to facilitate the recovery process for affected businesses.

Understanding Insurance for Riot Damage

Understanding how insurance works for damage caused by riots or vandalism is a crucial step that small business owners must take in managing the aftermath of these unfortunate events. Below is a guide to help SMEs understand their coverage and the steps they should take.

Is Riot Damage Covered?

Most business insurance policies cover damage caused by riots, though the extent of coverage varies. Typically, these policies include protection from physical damage to the business premises and the contents, such as fixtures, fittings and stock.

For example, some insurers include riot coverage as a standard feature in their business insurance policies, so if you needed to claim for the damages to your premises, you could recover the cost of repairs or replacements.

Additionally, many insurance policies also cover business interruption. This type of cover is particularly valuable if the unrest has caused significant disruption to your operations, such as when police cordons or danger in the surrounding area prevents customers from accessing your business.

How to Make a Claim

If your business is affected by a riot or civil unrest, it’s important to act quickly:

1. Document the Damage: Take detailed photos of all damage to your property. This visual evidence will be crucial when filing your claim.

2. Report the Incident: Contact the police via a non-emergency channel, like calling 101 or visiting your local station to report the damage. The police will give you a crime reference number, which you will need for the insurance claim.

3. Inform Your Insurer: Notify your insurance company as soon as possible. A delayed report can complicate the process and potentially reduce your payout.

4. Work with an Adjuster: Your insurer will likely send an insurance loss adjuster to assess the damage in person. Be prepared to provide all necessary documentation and evidence to support your claim.

5. Keep a Record: Maintain detailed records of all repair costs, lost revenue and additional expenses incurred due to riot damage.

Not Covered?

If your insurance policy does not cover damage caused by a riot or your provider rejects your claim, the Riot Compensation Act 2016 (RCA) provides an alternative route for compensation. The RCA allows businesses to claim for losses resulting from riots, even if they are uninsured or insufficiently insured.

To claim under the RCA, you must demonstrate that the damage was caused by a riot as defined by law - typically a disturbance by 12 or more people. The relevant Police and Crime Commissioner for your region manages the RCA claims process.

Businesses have 42 days from the riot's end to file a claim under the RCA. If you’re insured but the insurer rejects your claim, you have 42 days from the date of the rejection to start your RCA claim.

Protecting Your Business

While it’s almost impossible to predict when or where civil unrest might occur, there are steps you can take to mitigate the potential risks:

• Invest in Security: Installing robust security systems, such as alarms and CCTV cameras, can deter vandals and looters.

• Fortify Your Premises: You don't need to turn your workplace into Fort Knox, but shutters protect against broken windows, and sturdy locks can prevent break-ins.

• Make a Plan: Ensure your business has a plan to safeguard employees and property during working hours.

Finally, review your business insurance policy to ensure it covers all potential risks, including rioting, vandalism and looting. If you’re uncertain about your cover, our team at BusinessComparison can help you tailor a policy to meet your specific needs.

In challenging times, SME owners need to understand their rights and the resources available, ensuring they can stay safe, bounce back quickly and continue their operations with as little disruption as possible.

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