As we all watch the latest news in these volatile and troubling times, businesses damaged by looting, vandalism and fires should be aware that their losses might be covered by insurance.
Direct property damage and business income losses caused by these events will probably be covered under most standard-form policies. Such policies might also cover income lost as a result of related government orders and restrictions.
Note that presenting claims for such indirect losses may become difficult because insurance companies might attempt to argue that any losses were caused by Covid-19 restrictions, rather than the ongoing civil unrest.
Here is a definition of a civil unrest via Wikipedia:
“Civil disorder, also known as civil disturbance or civil unrest, is an activity arising from a mass act of civil disobedience (such as a demonstration, riot, or strike) in which the participants become hostile toward authority, and authorities incur difficulties in maintaining public safety and order, over the disorderly crowd. It is, in any form, prejudicial to public law and order.”
Any business that has potential losses related to the ongoing violence should put its insurers on notice as soon as possible. Businesses would also be well-advised to consult experienced, policyholder-side insurance counsel.
Santomassimo Davis represents policyholders – not insurers – and stands ready to assist clients, to analyze their policies and to maximize their insurance recovery.
Understanding how this affects the small business economy is part of our job here at Santomassimo Davis LLP, as we primarily focus in providing expert Outside General Counsel for a variety of law firms and legal issues related to Corporate and Business Law in New Jersey, New York and Pennsylvania.
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