The riots throughout the United States have been heartbreaking on a number of levels. While the social and political implications will be something our country grapples with for years into the future, the economic effects will be felt immediately.
Small businesses, already devastated by the pandemic and government-mandated shutdowns, are now having to deal with damage from riots and looting. How are businesses going to recover from this double assault on their bottom line?
Ideally, most businesses have insurance to provide security in the event of riots or looting. However, many insurance policies have exclusions of or limits on activities that could be viewed as “terrorism.” We do not yet know how insurers will categorize the riots.