In recent weeks, the UK has witnessed a surge in civil unrest, leading to riots in certain areas and significant damage to both public and private property. For business owners and individuals alike, these events raise urgent questions about the implications for their insurance coverage and what steps they should take to protect their assets.
Understanding Riot Coverage in Insurance Policies.
The insurance industry categorises riots as a distinct peril, as defined under the Public Order Act of 1986. This legal definition is critical because it outlines specific criteria under which a riot is recognised for insurance purposes. Riot-related claims can range from deliberate fire-raising and theft to malicious damage of property and these incidents can lead to claims from a wide array of sectors, including retail, hospitality and public infrastructure.
It is important to highlight that the situation is fluid and evolving, with claims varying from minor damages to losses amounting to hundreds of thousands of pounds. Given the uncertainty, businesses must act swiftly to mitigate risks and limit financial losses.
Risk Mitigation: Practical Steps for Businesses
Implement standard risk management practices to protect property and employees with key actions including:
- Ensuring security systems are functional: regularly test alarms, CCTV and other security measures to ensure they are operational.
- Verifying fire safety measures: sprinklers and fire alarms should be checked to confirm they are in working order.
- Securing Property: Make sure that all shutters and security doors are fully operational.
Staying informed through media and social platforms is also essential, as it allows businesses to anticipate potential threats and take pre-emptive actions.
Insurance Claims and the Riot Compensation Act 2016 (RCA)
In cases where damage occurs due to riots, the Riot Compensation Act 2016 (RCA) provides a crucial safety net. If an insurance claim is declined or only partially accepted—perhaps due to exclusions or limited coverage—affected parties may seek compensation under the RCA. This legislation covers various types of losses, including:
- Damage to buildings: property owners can claim for structural damage.
- Stolen or damaged contents: tenants and occupiers may claim for the loss of contents.
- Business items in vehicles: coverage extends to business goods stored in vehicles.
- Underinsured vehicles: There is provision for vehicles that are underinsured or only insured for third-party losses.
However, the RCA does not cover personal items held outside a building, consequential losses (such as lost revenue), or personal injuries, which are instead addressed by the Criminal Injuries Compensation Authority (CICA).
Evidence Collection and Claims Process.
For a claim under the RCA, it’s crucial to establish that the event in question qualifies as a riot under the legal definition. This requires gathering substantial evidence, such as CCTV footage, social media posts, and media coverage, to prove that a riot involving 12 or more people with a common purpose took place.
Once evidence is gathered, the claim process involves submitting a detailed form to the relevant police authority, and the deadlines for submitting claims are stringent at 42 days from the end of the riot or from the date an insurance claim is declined.
Proactive Riot Protection is Key
It’s essential for businesses to take proactive measures to safeguard their interests during the current civil unrest in the UK. Understanding the scope of insurance coverage, familiarising yourself with the Riot Compensation Act 2016, and staying vigilant about potential risks are all critical steps. By doing so, businesses can ensure they are prepared to navigate the challenges posed by civil disturbances and protect their assets effectively.
Contact the Sutcliffe & Co Insurance Brokers today to discuss how to safeguard your business from the impact of riots and review your insurance policy today on 01905 21681 or alternatively email Enquiries@sutcliffeinsurance.co.uk.
