Along with its recap of the applicable provisions of UK law covering damages caused by riots, the Association of British Insurers also issued a special letter to business owners. The ABI expressed its sympathy for those “who have suffered damage to their properties as a result of the rioting we have seen across the UK but particularly in London in recent days.”
The ABI assured the business community that its members “understand that this is a time of enormous stress for business owners, but they should know that their insurers will be on hand to answer any questions that they may have.”
It pointed out that most commercial insurance policies “will cover businesses for damage to their premises, including the interruption to their business as a result of fire, looting and the other damage caused by the recent riots. Some policies will also cover those businesses which are not damaged but whose trade has been affected by the aftermath.”
However, the ABI also urged anyone affected by the riots to “read their insurance policy’s terms and conditions carefully to check what they are covered for,” and, if necessary, to contact their insurance company “for any additional clarification that is needed and for any immediate assistance.”
The UK’s insurers “are working as quickly as they can to deal with claims and most have 24 hour call centers that will be able to help.”
The ABI also explained that many insurance policies “require claims to be notified within a specified time period, often 7 days, of the event giving rise to the damage to property in order for that claim to be covered. If you think you might have a claim, please review your insurance policy and contact your insurer or insurance broker as soon as possible.
“It is important to recognize that many buildings that have been severely damaged will be dangerous or may be crime scenes which may pose access issues for business owners and insurers alike.
“It is too early to tell what the total cost of the recent rioting might be, but insurers are expecting to face significant losses of at least £10s of millions. But the priority for insurers at the moment is to help people through this incredibly traumatic time.”
Source: Association of British Insurers
Topics Carriers Profit Loss
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