Partner Ev Cygal discussed coverage of income loss insurance claims from businesses that were looted or damaged due to civil unrest following the Minneapolis death of George Floyd.
Most standard commercial property insurance policies cover riots and civil commotions, including when access to a business is restricted by civil authorities because of damage to neighboring properties.
Ev said that insurers are unlikely to fight claims after facing criticism for denying income loss claims from businesses forced to close because of COVID-19.
He added that while many businesses have insurance because their landlords or mortgage lenders require it, the challenge for small businesses will be high deductibles or coverage caps that may not address the extent of the damage.
“It won’t be a coverage issue, but whether they purchased enough,” he said.
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