The recent spate of riots across various cities has raised significant concerns for property owners, particularly in terms of the insurance implications associated with such civil unrest. These events, characterised by widespread vandalism, looting, and arson, have underscored the importance of understanding the extent of insurance cover available to protect against such risks.

The Scope of Insurance Cover

For property owners, the primary concern is whether their insurance policies adequately cover damages caused by riots. Typically, most standard property insurance policies in the UK include protection against "riot and civil commotion" as part of the perils covered under the policy's "all-risks" or "specified perils" sections. This means that if a property is damaged as a direct result of a riot, the insurance should cover the costs of repairs or rebuilding.

However, the extent of cover can vary significantly depending on the terms of the policy. Some policies might have specific exclusions or limitations related to acts of terrorism, which can sometimes be conflated with acts of civil unrest. It is crucial for property owners to review their policies to ensure that they are not underinsured in the event of such incidents.

Business Interruption Cover

Beyond the physical damage to property, business interruption (BI) insurance is another critical aspect to consider. Riots can lead to significant disruption of business activities, either due to direct damage to premises or as a result of the broader impact on the local area. BI insurance typically covers loss of income during the period when the business is unable to operate due to an insured event, such as a riot.

For property owners leasing out commercial spaces, this type of insurance can be particularly important. If tenants are unable to operate their businesses due to damage caused by a riot, this could lead to loss of rental income. Ensuring that the BI cover is sufficient to address such potential losses is essential.

Public Liability and Legal Considerations

Property owners should also be mindful of public liability issues that may arise in the aftermath of a riot. If a property becomes unsafe due to damage and someone is injured as a result, the owner could be held liable. Public liability insurance is designed to protect against such claims, but the adequacy of this cover should be regularly reviewed, particularly in areas prone to civil unrest.

Additionally, legal disputes may arise from disagreements over the interpretation of policy terms or the extent of cover. Property owners may need to engage with their insurers and possibly seek legal advice to resolve such disputes, especially in cases where insurers attempt to deny claims based on exclusions or other policy terms.

Risk Management and Prevention

In light of the increasing frequency of civil disturbances, proactive risk management has become more important than ever. Property owners should consider measures such as improving security, installing robust physical barriers, and using surveillance technology to deter potential damage. Working with an experienced insurance broker, like Becks Insurance Brokers, can also be beneficial in ensuring that all potential risks are adequately covered and that policies are tailored to the specific needs of the property and its use​​.

Conclusion

The recent riots serve as a stark reminder of the importance of having comprehensive and well-understood insurance policies in place. Property owners must ensure that they are adequately covered for both physical damage and business interruptions, while also considering the broader legal and public liability implications. By taking a proactive approach to risk management and working closely with their insurers, property owners can better protect their investments and mitigate the financial impact of civil unrest.