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ABI issues business insurance advice
Commercial insurance should cover effects of London riots; businesses affected urged to contact their insurer as soon as possible
The Association of British Insurers (ABI) has moved to reassure those businesses affected by the riots in London and other parts of the UK that commercial insurance policies should cover losses resulting from the recent riots seen in London and other parts of the UK.
ABI has written to business groups to let business owners know that many commercial insurance policies with cover them for loss of trade as well as damage. ABI said people should contact their insurer for information and advice as soon as possible, noting that many insurers run 24-hour helplines.
In its letter to businesses, ABI said: “We have every sympathy for those business owners 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. We 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.
“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.
“It is important for people to read their insurance policy’s terms and conditions carefully to check what they are covered for. If necessary, contact your insurance company for any additional clarification that is needed and for any immediate assistance. Insurers are working as quickly as they can to deal with claims and most have 24 hour call centres that will be able to help. If you think you might have a claim, please contact your insurer or insurance broker as soon as possible.
“It is important to recognise 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.”
Nick Starling (pictured), director of general insurance and health at ABI, said: “Most commercial insurance policies will cover businesses for damage to their premises, including the interruption to their business as a result.
“Some policies will also cover those businesses which are not damaged, but whose trade is affected by the aftermath. Insurers are working as quickly as they can to deal with claims.
“However, access to dangerous buildings which are also crime scenes is a serious issue. It is too early for us to have an accurate picture of total costs, especially business interruption costs, but insurers are expecting significant losses, of at least 10s of millions of pounds.”
