Rioting in London last week is expected to have caused damage stretching into the hundreds of millions of pounds. While most businesses will have insurance to cover costs, much of the cost of the damage is going to have to be paid for by the government.
Conclusive figures about the cost of the damage have not yet come in, but some insurers estimate £200million, one German insurer says it expects to pay out £25million alone. ABI, a London based insurer says figures are hard to calculate as the loss of business figures are still not known.
The rioting began in Tottenham on August 6th after a peaceful protest over the death of a man who was shot by police, turned violent. The rioting escalated a day later when more people took to the streets, looting and causing damage. Days after this, the rioting spread to other UK cities, causing five people to lose their lives.
London brokerage firm Jardine Lloyd Thompson has said that most businesses will be covered by an all-risk policy. Insurance holders should make sure they read the details of their policies and notify their insurers about claims as quickly as possible. Ms Wooley head of Marsh Inc, a property practice has said that businesses should document everything to know the exact extent of their loss.
Ms Wooley goes onto say, “Business interruption is typically associated with damage to property, therefore policyholders should check to see whether they are covered for other events that may prevent them opening.”
Those who own vacant properties should be cautious as many insurers may have excluded coverage for these buildings. The law firm Reynolds Porter Chamberlain has said insurers will probably need to have claims within a week for them to be help valid. The Federation of Small Businesses has urged people to inform the police and then their insurance companies as quickly as possible.