Chicago’s high-end shopping district, The Magnificent Mile, entered its third round of retail closures this year following more looting. As a result, affected business owners and operators are filing their second ¬— or even third — claim this year.

With COVID-19 and civil unrest still raging across America, other major cities and their businesses could face a similar scenario in the coming months.

Depending on the damage, three insurance policies may apply to this unfortunate scenario:

  • Property coverage reimburses an owner for damages to the property, including the costs required clean up the property and fully restore it.
  • Crime coverage reimburses a business for financial losses due to burglary and other crimes.
  • Business Interruption (BI) coverage helps a business bridge its costs until it can reopen. This includes replacing potential income the store would have earned for the duration of time until reopening as well as costs incumbent on paying employees.

Even if you previously filed a claim for against your Property, Crime or BI policy for looting or vandalism at the end of May, or a BI claim during COVID-19, this is a new event and a new claim is warranted.

Insurance carriers are being lenient on the claims due to looting and vandalism and are therefore not likely to drop coverage as a result. However, the market in all three of these lines of coverage is hardening due to the general increase in claims. Therefore, all businesses should expect policy increases moving forward, regardless of their claims activity.

When filing a claim on any of these three policies, remember the following:

  1. Time is of the essence. Don’t wait to file the claim.
  2. Document it. Collect video footage, photos and any other documentation of the damage. Send it to your broker, claims consultant and adjuster.
  3. Maintain records. Take a detailed inventory of what was taken and the value it holds. Note any clean up and board up charges. Take account of what is left as well.
  4. Clean up and board up. Clean up to the best of your ability and board up your storefront to protect what’s left.
  5. Stay in constant contact. Even after the claim has been filed, maintain constant contact with your broker, claims consultant and adjuster. As questions surface for the adjuster, or you need to update the value of the claim, being in touch will further facilitate the claims process – and may even result in a faster resolution.

Contact your HUB broker and claims consultant for more information about insurance for civil unrest and how to file a property, crime or BI claim as a result of looting or vandalism to your retail operation.