Images published of the riots across the UK will be imprinted on the public consciousness for a long time. The fires at the carpet warehouse in Tottenham and the furniture store in Croydon; the gutted Foot Locker in Brixton; the commercial property of countless small businesses ransacked and left as empty or burnt-out shells.
In an attempt to dissuade rioters, one restaurateur put up a large sign in their window saying ‘No insurance – please don’t break my windows!’ It’s unknown whether the plea was heeded, but if it wasn’t, according to solicitors Reynolds Porter Chamberlain LLP (RPC), there are options still available.
The City law firm has put out a statement, advising businesses how they can recover the value of any damage sustained during the riots, even if they don’t have insurance. It is important to say at this point how foolish it is to not have insurance for your business, no matter whether or not there are riots in your area, because a lack of this form of protection could see your business here today and gone tomorrow should a disaster befall it.
RPC suggests costs can be recoverable directly from the police, under the Riots (Damages) Act 1886 (RDA). However ‘compensation under the RDA will not normally extend to the financial losses of the business while it is unable to trade’. Only businesses with business interruption insurance will be able to claim for this, they say.
What about those businesses who do have their commercial property insured?
RPC underline the need to notify insurers as soon as possible, ‘typically [within] seven days’, to avoid possible claims rejection. The insurer can then make the claim under the same RDA, which has to be submitted ‘within 42 days of the damage occurring’.
Since there have been incidents in most UK cities, the effect of so many RDA claims in such a short space of time may affect police budgeting, say RPC. The firm anticipate ‘calls to reform a law that compels police forces to compensate businesses and individuals for riot damage’.
Will this lead to increased commercial property premiums in the future? Wait and see is the message from RPC.
