Would a Stanley Cup Riot Affect Your Business?

After watching the 2011 Stanley Cup finals last night I was amazed and shocked along with most other people at the ensuing riot that occurred in the streets of Vancouver. The sheer disregard for the property of others was disgusting, what would our great country be if people had no rights to property? Or insurance for that matter. Hopefully all those affected have insurance.

Most Canadian property insurers follow a similar wording to the following: "You are insured against all risks of direct physical loss or damage subject to the exclusions and conditions of this form..."

What happened last night would more than likely be classified by your insurer as theft or vandalism. Of course if your damage is fire or smoke related it will be classed as such. The "Exclusions" list war and terrorism amongst other things. Vancouver's events certainly were not war, and terrorism is defined as being ideologically motivated, so an insured person is in the clear there. Another possible exclusion that may affect a property owner is most policies exclude coverage if the unit has been vacant for more than 30 days. You will have to refer to your own specific policy and wording if this is your case. In most cases, though coverage should exist.

Once you have determined with your broker that you do have coverage, you need to notify your insurer. Get to your building or business, and take lots of photos. If you have any damage (broken pipes or such) which are continuing to cause damage, do what you must to stop continuing damage and to keep further damage from occurring. If it was a retail space, a complete inventory should be done to help determine how much of your stock may have been stolen. Depending on the length of time you're shut down and the coverage you have, you may be able to make a business interruption claim as well.

When speaking to your insurance company's loss adjusters, be sure to provide them with all photo's and documentation that might assist with settling your claim. Do be sure to turn over any security footage to both the Police and the company handling your claim. Lastly if you get any response from your insurer that doesn't sit right with you, speak to your broker. They will guide you through the claim process and also the wording of your policy. Your insurance broker should also be willing to step in on your behalf and advocate for you. Each individual case will be different and will be treated as such. Consult the professionals you have at your disposal and with some luck you'll back in business shortly.

Speaking of luck, I guess those of us that live in the Toronto area are lucky in that we won't know for a long time what it's like to have a winning team lose.