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Riot Insurance Claims and Risk Management Advice - Aug 2011
Individuals and business owners caught up in the disturbances of the last couple of nights will almost certainly be covered for loss or damage to their property under their insurance policy either under the perils of theft, malicious damage or, more probably, the peril of riot. In fact, experts are already predicting that the total cost of insurance claims from the riots will be between £200m and £500m.
Although comments by PwC in today’s (9 August) press that “urged customers to check the small print of their policies amid concerns that the impact of recent rioting may not be included in insurance contracts” may be well intentioned they are, in principle, unfounded and only add to the pressure on those who have had property damaged.
The current law relating to riot damage allows insurers to recover some of their outlay for riot property damage claims from the local police authority but only if they lodge their claim with the relevant police force within 14 days of the riot. Therefore affected policyholders are strongly advised to contact their insurance broker without delay to ensure that they comply with their policy conditions relating to the prompt notification of riot damage claims.
At times like this it is very easy to be consumed by the 24 hour press coverage of these sad events and the extent of the property damage, however employers in affected areas are being advised to consider their employees safety, particularly if they have lone workers or are a retail business with extended hours or a 24/7 service. Early closing or a temporary change in opening hours may be prudent.
Whilst there is very little a business can do to prevent a determined mob there are some very simple risk management measures which city centre businesses should consider beyond ensuring all normal security measures are put into operation. These include:-
If you are able, remove combustible waste from the vicinity of your premises. Maybe even move bins inside over night.
Ensure your CCTV is fully operational.
Minimise high risk stock levels until the current wave of problems is over.
Remove high value stock items from display windows.
Keep as little cash as possible on the premises overnight.
If possible, remove loose objects which could be used as missiles.
Review your existing sums insured to ensure they remain adequate.
Whilst it may well be a condition of your insurance policy, don’t forget to remove computer back-ups from your premises at night.
