Following the tragic incident in Charlottesville, Virginia that saw a car plow through a group of demonstrators, riot insurance might be something that even the smallest towns will need to consider.
Last weekend, white supremacists protested Charlottesville’s decision to remove the statues of Confederate Generals Robert E. Lee and Thomas “Stonewall” Jackson. In response, a counter-demonstration was held. With tensions running high between both groups, a young man – 20-year old James Alex Fields Jr. – allegedly drove his car into the counter-demonstrators, resulting in the death of one and injuring 19.
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Fields has been charged with second-degree murder.
Riot insurance is typically a requirement for major cities, especially those cities that are hosting controversial gatherings. But the Charlottesville incident proved that even midsize cities and small towns may need the coverage – especially communities in the South, where over 700 Confederate monuments stand.
Insurers both in America and abroad have taken notice of the recent increase in political risk and are advocating that cities and municipalities that are facing demonstrations of any kind should secure riot insurance before it is too late.
“There’s an increase in activism from all sides,”
Allianz Insurance London head of terrorism Srjdan Todorovic told CBS News. “People aren’t just satisfied with expressing themselves on social media anymore. They want to do their talking on the streets.”
According to Todorovic, many insurers have been “blindsided” by the current atmosphere of violence, so traditional municipality insurance, as well as P&C policies, may not be enough to cover damages arising from civil disturbances.
“Policies generally include coverage for losses caused by riot,” explained Insurance Information Institute spokesperson Loretta Worters. “[But it has to be] direct physical loss caused by riot or civil commotion, and looting at the time and place of the occurrence.”
“As for those businesses that must suspend operations due to rioting, coverage is only triggered if there is direct physical damage to the premises of such magnitude that the business must suspend its operations,” Worters added.
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