PAGE 3 PROTECTING YOUR PROPERTY ® 800.248.2888 | greenspanai.com Sheila E. Salvatore, Editor | Editor@AdjustersInternational.com Copyright © 2021 Adjusters International, Ltd. All Rights Reserved. E09-1023 Insights for Your Industry® is published as a public service by Adjusters International, Ltd. It is provided for general information and is not intended to replace professional insurance, legal and/or financial advice for specific cases. insured will likely be covered for items lost during frenzied looting, but not necessarily for the loss of uniquely valuable items or pieces of equipment that are reported missing. For example, a shop will likely be covered for lost or damaged merchandise in the wake of a welldocumented disturbance, but it may not be covered for items stolen in the aftermath of a disturbance. Especially vulnerable for theft are valuable items such as computers, sports equipment, jewelry, clothing, etc., which can be stolen by anyone having access to the premises, following the event — even employees. Any business that stocks valuable items should confirm with its insurance agent or broker whether it is covered for theft, and to what extent and under what conditions. Loss of Attraction Things are different if you determine that your location constitutes as much if not more of your value than your products and services. Insurance for vandalism and riot damage will not allow a business to survive if patrons shun a location in the wake of a violent episode. Indeed, if your business is a few blocks from where damage occurs and outside the area closed off by public authorities, you would receive no recovery at all from your property insurance. Consequently, a business that is heavily dependent on its location may have reason to reduce its reliance on traditional property insurance (through lower limits and higher deductibles) and consider new forms of coverage for “loss of attraction” or “workplace violence.” Available primarily in “surplus lines” markets, insurance for loss of attraction will pay part of the difference between what a business would normally earn and its reduced earnings caused by a decline in commerce in its location. Unlike business interruption insurance, loss of attraction coverage would not require damage by a “covered peril.” It would respond to economic changes, regardless of the cause. “Workplace violence” insurance entails a range of new programs that provide coverage for losses caused by violent events, and are otherwise known as “active shooter” and “active assailant” insurance. Of importance to urban property and business owners is that these programs often cover costs of advertising and public relations to re-establish the attractiveness of a location after a violent event. Some of them will pay to replace a structure that is damaged only slightly, if at all, but no longer suitable for business because of a traumatic event that occurred there, such as a mass shooting. Riots, Vandalism and Insurance Continued
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