Does business insurance cover riots? Running a business takes hard work, time, and money. You spend years building your business, growing your customer base, and keeping everything running smoothly.
But sometimes, things happen that are completely out of your control. Events like riots, civil unrest, or looting can damage your property and stop your business from operating. These situations are unpredictable, but they can cause serious losses.
That’s where business insurance comes in. Business insurance is meant to protect you from many types of risks, including natural disasters, accidents, lawsuits, and sometimes, civil disturbances.
But many business owners ask: Does business insurance cover damage caused by riots? The answer is yes, in many cases, it does.
However, the details depend on the type of coverage you have, your policy limits, and the exact language in your insurance agreement.
In this article, we’ll explain how business insurance works when it comes to riot-related damages, which types of coverage apply, and what steps you should take to stay protected.
What Is Considered a Riot?
Before we go deeper, it’s important to understand what insurance companies mean when they say “riot.” Most insurance companies define a riot as a violent disturbance by a group of people that causes damage to property or stops normal activities. But riots may include:
- Vandalism (like broken windows or graffiti)
- Looting (when people steal from stores or businesses)
- Fire damage
- Physical damage to buildings, signs, or equipment
- Civil commotion or unrest
These events often happen during protests or political unrest, but not all protests turn into riots. The main thing is whether the situation becomes violent or causes destruction.
Does Business Insurance Cover Riot Damage?
In general, yes, most standard business insurance policies cover damage caused by riots. However, different parts of your policy may apply to different types of losses. Let’s break it down:
Commercial Property Insurance
This is one of the main types of business insurance, and it typically covers physical damage to your building, equipment, furniture, and inventory. If a riot leads to:
- Broken windows
- Fire or smoke damage
- Stolen merchandise
- Damaged shelves, walls, or flooring
…then your commercial property insurance will likely pay for the repairs or replacements, as long as riots and civil unrest are not excluded in your policy.
It’s always important to read the fine print or speak with your insurance agent to confirm what’s covered.
Business Interruption Insurance
Sometimes, the damage caused by a riot forces you to close your business for a while. This is where business interruption insurance can help.
It covers lost income and helps pay for ongoing expenses, like rent, utilities, or employee wages, when your business cannot operate because of covered property damage.
For example, if your store is damaged during a riot and you have to close for repairs, business interruption insurance may cover your lost revenue during that time.
However, this coverage usually only kicks in if property damage has already occurred. If there’s no physical damage but you still close as a precaution, your policy may not apply.
General Liability Insurance
If a riot causes injuries on your business property, general liability insurance may help. For instance, if a customer or passerby is hurt during the unrest and sues your business, this insurance may cover legal fees or medical bills.
Keep in mind that this does not usually cover injuries to your employees. For that, you would need workers’ compensation insurance.
Vehicle Insurance for Business Vehicles
If your business owns vehicles and they get damaged during a riot, they may be covered by your commercial auto insurance, but only if you have comprehensive coverage. This type of auto insurance covers things like vandalism, theft, and fire.
If you only have basic liability coverage, you won’t be protected from riot-related vehicle damage. It’s a good idea to review your auto policy if your vehicles are at risk.
Extra Expense Coverage
Some business insurance policies include extra expense coverage. This helps pay for costs related to temporarily relocating your business, speeding up repairs, or renting equipment to keep operations going.
If a riot forces you to move or work from another location, this coverage can make a big difference.
What’s Not Covered?
While many types of riot-related damage are covered, there are some limits. Here are a few things that might not be included:
- Government shutdowns without any property damage
- Losses due to fear or threat of a riot (without actual damage)
- Delays in reopening after repairs are complete
- Damage caused by war, terrorism, or rebellion (these may be excluded in some policies)
Again, every insurance policy is different. The best way to know what’s covered is to review your plan or ask your insurance provider directly.
How to Protect Your Business Before Unrest Happens
You can’t always predict when civil unrest will happen, but you can prepare in advance. Here are a few steps to help protect your business:
- Review your insurance policies and make sure they include riot and civil commotion coverage.
- Add business interruption insurance if you don’t already have it.
- Take photos of your property and inventory to make claims easier if damage occurs.
- Strengthen your building security, install cameras, alarms, and reinforced windows or doors.
- Back up important business data in case of equipment damage or theft.
- Create an emergency plan so you and your staff know what to do if unrest occurs nearby.
Filing a Claim After Riot Damage
If your business is affected by a riot, it’s important to act quickly. Here’s what you should do:
- Document the damage with photos or video.
- Make a list of damaged or stolen items.
- Secure your property to prevent more losses.
- Contact your insurance company as soon as possible.
- Keep records of any repairs or temporary business expenses.
Your insurance provider will guide you through the claims process. Having good records and acting fast can help you get compensation more quickly.
Final Thoughts
Business insurance is there to protect you from many unexpected events, including damage caused by riots.
In most cases, if your policy includes commercial property, business interruption, and comprehensive vehicle coverage, you’ll be covered for most riot-related losses.
However, policies can differ, so it’s important to read your documents carefully and speak with your agent to understand your exact protection.
