Does Your Small Business Insurance Cover You Against Looting? Image

Does Your Small Business Insurance Cover You Against Looting?

June 3, 2020


Looting and the causing of criminal damage to other people’s properties has been in the headlines again recently, as protesters took to the city’s streets worldwide, in support of the BlackLivesMatter movement. For some out to cause wonton destruction and steal from unsuspecting business owners, they were indiscriminate and targeted business of all sizes. 

But no matter the cause, looting remains a criminal act, and one that in these already trying times, can have a devastating impact upon business owners already hard hit by the global health pandemic. 

While some shop owners chose to staunchly protect their businesses and remain on site to deter the looters with their physical presence, this is a dangerous approach and one that can have deadly consequences. So, if you don’t physically protect your shop from looters, what else can you do to keep it safe from harm?

Some insurance policies cover losses from merchandise theft and destruction of property, and getting the right coverage could be the safest and most effective way to protect your livelihood. 

Does your small business have adequate coverage in the event of looting?

While most BOP’s provide coverage for property damage and loss, and many businesses must have basic insurance to meet the requirements of their lease, it’s often left up to the owners themselves to choose how much insurance they want to buy. How much coverage is needed will depend largely upon the type of business, the inventory value and how much savings the business owner has. 

To know if your policy provides you with insurance against looting, it might be best to talk directly to your provider, who can upgrade your policy if necessary. Note that if your business doesn’t hold an insurance policy to cover your inventory and equipment, then any losses from an incident of looting would come out of your pocket. 

If your business has been looted, what should you do?

Due to the chaos and uncertainty caused by the ongoing pandemic, some insurers have been ordered to refund part of their commercial premiums for those businesses affected by covid-19, and in some cases, grace periods for paying premiums were put in place. If your business has been the victim of an incident of looting, or to know whether you might be entitled to a premiums rebate or grace period, contact your insurance provider at the earliest.  

There are many risks that your business may become exposed to, no matter where it is or what you may be selling, and if you don’t already have adequate insurance, you should make it a priority. Looting is just one way in which your business can end up costing you your hard-earned money, and while you may think it will never happen to you, the latest riots and protests have proved that criminals and vandals are often indiscriminate, and that anyone can become a victim.