To help business owners understand some of the key insurance issues relating to civil unrest, the information provided below is intended to present a general overview of relevant insurance coverages and some important tips to consider. Although the information below serves as an overview, policyholders are strongly encouraged to read the terms of the policy purchased, as terms and definitions can vary from one policy to another.

Business/Commercial Insurance

Standard commercial policies typically include coverage for physical loss or damage to the insured premises and other business property resulting from looting, vandalism, and riots.  Whether a specific loss will be covered depends on the actual language in the applicable policy and any coverage exclusions that may apply.  It is important to check your specific insurance policy for the following coverages:

• Vandalism, Malicious Mischief — Vandalism is generally defined as willful and malicious damage to, or destruction of, the policyholder’s property; malicious mischief is similar to vandalism and generally defined as the willful destruction of property for vicious or mischievous purposes.
   
• Riot and Civil Commotion — Both a riot and a civil commotion involve a revolt by a gathering of people in a public place.  A civil commotion is similar to a riot, but involves a greater number of people.  Riot and civil commotion can be difficult to differentiate. The perils are often listed together in a policy.
   
• Business Income Coverage — This coverage is for the loss of income sustained due to the necessary suspension of business operations during a period of restoration. The suspension of business operations typically must be caused by direct physical loss or damage to the policyholder’s premises resulting from a covered peril.
   
• Civil Authority Coverage — Business income insurance typically includes civil authority coverage, which provides loss of income due to prohibited access to the business premises by civil authority such as a governmental entity. Civil authority insurance covers income lost during a limited period of time. Businesses that are forced to limit hours or suspend operations due to rioting, vandalism, or civil commotion and have coverage for this particular loss of income may be covered after an initial waiting period.
   
• Glass Coverage — Many commercial policies cover glass breakage. However, some insurance companies require that glass coverage, such as plate glass insurance, be added to the standard policy by endorsement for an additional premium.
   

Please note:
1) These tips are for general guidance only and are not a substitute for legal advice.
2) Information above was published by the California Department or Insurance.