.jpg){kind=link}
Although most of the violence at protests against the lack of justice for the murderers of Black Americans including George Floyd, Breonna Taylor, and Ahmaud Arbery have been instigated by police, in some places the righteous anger and rage of the protests has spilled over into property damage.
Many Black business owners, sympathetic to the cause, still want to know who is on the hook financially for this property damage and income loss. Luckily, insurance coverage - even a basic liability policy - can assuage this fear.
But many worry that nuanced challenges such as timing of leasing agreement renewals, or caveats related to public health precautions enacted in response to coronavirus (COVID-19), may prevent their losses from being fully repaid.
Black business owners in particular face the extra challenges of being denied access to capital for repairs, forced closures having a more acute effect on their financial stability long term, and lack of liquid assets to cover insurance deductibles.
Black-owned, Atlanta-based luxury brand Attom Concept Store lost $100,000 worth of merchandise during protests on May 30th, and its owner struggled with how to cope with the loss. In their case, a fundraising campaign for Atlanta’s Black-owned businesses pledged support, and Attom has raised over $50,000 via a GoFundMe.
For most businesses, however, this won’t be necessary because of their insurance coverage.
According to the Los Angeles Times, “Because of the COVID-19 crisis, [California Insurance Commissioner Ricardo] Lara ordered insurance companies to refund a portion of commercial premiums for businesses affected by the pandemic through May and requested they extend grace periods for paying premiums through mid-July.”
State officials are encouraging businesses to contact their insurance companies to better understand the events that are covered in their own policies and what grace periods or premium rebates may apply.
According to the Insurance Information Institute, “property damage from riots, civil commotion and vandalism are generally covered under standard policies.”
These standard policies - commercial property insurance, business income insurance, etc. - cover damage to the business’ building structure, damaged or stolen inventory and/or equipment, and revenue losses or extra expenses from disruptions from authorities such as police or federal agencies such as the Center for Disease Control.
That means the pandemic and recent uprisings against police violence are likely covered, and insurers should be prepared to accommodate businesses.
“It’s unclear what the nationwide losses will be from [recent] events,” reported CNBC. “However, for a sense of scale, the riots that followed the Rodney King police beating in 1992 resulted in $775 million in damage, or $1.42 billion today, according to the Insurance Information Institute.”
“That pales in comparison to damage done by some natural disasters, including Hurricane Katrina, which resulted in $41 billion in insured losses,” adds the Insurance Journal.
The purpose of the insurance industry is to protect people from damages in times of distress. For Black business owners today, this particular time of distress is compounded as they navigate meeting their economic obligations and supporting those who are fighting for their human rights as well.