British authorities have appealed to insurers to process damage payouts quickly for businesses affected by the recent riots that impacted different areas of the country.
A BBC report states that business and trade secretary Jonathan Reynolds (pictured) has already sent a letter to the Association of British Insurers (ABI) to help ensure companies receive “the cover that they are entitled to through their insurance policies as swiftly as possible.”
The BBC report noted that business establishments in Stockport, Liverpool, Hull, Sunderland, and Belfast, including shops and hotels, suffered damage as rioters smashed their windows or façades or set them on fire, and some were even robbed by the rioters.
Meanwhile, the ABI affirmed its commitment to “work with our members, the government, and other stakeholders, to do everything we can to help customers recover as quickly as possible.”
Reynolds told the BBC that he had already visited Liverpool and talked to small business owners who were affected by the riots.
“They weren’t aware if they were insured or underinsured that there was still help available to them,” Reynolds said to the BBC.
Most commercial insurance policies cover companies for damage to their premises caused by civil unrest, noted the BBC report. The report also explained that most insurers also include “interruption to business operations”, such as if the police cordoned off an area that stopped shoppers from entering a store, resulting in a loss of income for the firm.
Businesses that do not have insurance can also receive compensation as stipulated in the Riot Compensation Act (RCA).
“It covers damage, destruction, and theft of stock from things like looting,” the official explained.
However, the victim must be able to demonstrate that the damage being claimed was because of a riot.
Read more in: UK riots – what are the insurance implications?
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