Nationwide Riots August 2011
10/08/2011 Risk Management and Riot claims reporting rules
Following the riots across the UK over the last few days we are urging our clients to be extra vigilant and ensure that the following steps are followed:
- If you have ability to control public entry into your shop using an electrically controlled door entry system please use it at all times until such time as normal trading conditions have been restored.
- Keep the value of stock in your display windows to a minimum and try to leave nothing in the windows when the premises are closed.
- Minimise the value of stock that is left “out of safe” when the premises is closed. Secure as much as you can in the locked safe and always remove the keys from the premises.
- External Shutters should be lowered and secured or if you do not have external shutter consider boarding up any vulnerable windows.
The Jewellers block policy is an “all risks” policy which includes insurance for damage caused by fire, malicious persons, theft, robbery, riots and civil commotion – unless your premises is located in Northern Ireland where the cover for riots and civil commotion is excluded.
If you suffer loss or damage during the current spate of crime It may be difficult to identify if the causation is riot damage or theft, robbery or malicious.
There are established arrangements in place with the local Police Authority to reimburse anyone sustaining damage to property as the result of a riot under the Riot Damages Act 1886. However there are specific and critical time lines to meet for insurers to be reimbursed by the local police authority.
Any claim under the Act must ‘’be made in writing and received by the local police authority within 14 days of the alleged incident”.
Any claim must always be notified to your insurers as soon as possible but in the case of any claim for riot and/or civil commotion it is imperative to notify Insurers immediately and with full supporting documentation. This needs to be received within seven days of the incident occurring. There is a possibility that your insurers recovery action may be unsuccessful and be turned down by the Police Authority if the action is time barred. Insurers are entitled to recover their outlays – however they must do this within a very strict time scale.
Anyone claiming needs to be aware that they must notify us immediately of any damage but equally important is that they must be able to quantify and substantiate their losses with potentially both a schedule of loss and statement of truth within a week of the incident occurring.
The Act excludes liability for consequential losses, such as loss of profits – however if you carry this form of insurance you will be able to claim under your policy for business interruption.
The current definition of a riot is codified in the Public Order Act 1986 and the essential points are:
- 12 or more persons must be present together and use or threaten unlawful violence for a common purpose and the conduct of them (taken together) must be such as would cause a person or reasonable firmness present at the scene to fear for his personal safety
- It is not necessary for the Claimant to show intent to use force to resist such opposition
It is not necessary for anyone to be present and actually harmed.
If you need any further assistance or clarification please do not hesitate to contact us on 0121 233 3401 or via email to insurance@gjis.co.uk.
