Riots: Licensees urged to contact insurers

Licensees whose pubs have been hit by the riots are being urged to contact their insurance company for advice as soon as possible.

That's the advice from the Association of British Insurers (ABI), which says that most insurance policies will cover for looting and fire. Some policies will also cover loss of trade, even if the building has not been damaged.

The ABI warned that some firms only take claims within one week of the incident.

"We have every sympathy for residents and business owners who have suffered damage to their properties," said director of general insurance and health at ABI Nick Starling. "This is a time of enormous stress for them and their insurers will be on hand to answer any questions that they may have.

"Most commercial insurance policies will cover businesses for damage to their premises, including the interruption to their business as a result. Some policies will also cover those businesses which are not damaged, but whose trade is affected by the aftermath. It is important for people to contact their insurer to check what they are covered for and arrange for immediate help.

"Insurers are working as quickly as they can to deal with claims. However, access to dangerous buildings which are also crime scenes is a serious issue. It is too early for us to have an accurate picture of total costs, especially business interruption costs, but insurers are expecting significant losses, of at least tens of millions."

Katrina Curd, director at insurance broker Terry Osborne, advised licensees to check their policy wording or call their insurer. She said: "Licensees that have been affected by the riots must notify their insurance company of any problems immediately. As a precautionary measure, licensees should call their insurer to confirm what cover they do have in the event of a riot or looting attack, if they don't have any cover, they should find a way to get it. This type of cover is not necessarily automatically included in all policies."