The Association of British Insurers has issued a statement following recent outbreaks of violent disorder across the UK, as attention shifts to the cost of the commercial damage, and, specifically, the impact on insurance.

“Individuals, homeowners and businesses affected by the recent unrest will understandably be incredibly worried and distressed,” the ABI said, noting that this is an “incredibly stressful time".

Many commercial insurance policies will cover businesses for damage to the premises, while business interruption insurance may cover the loss of income for a given period of time if a business suffers property damage and cannot carry on with business as usual. Some policies may also include denial of access cover and/or NDBI. On claims numbers, the association said it was “too early to estimate”.

Demonstrators, some reportedly affiliated with, or mobilised by, far-right groups, have clashed with police officers and counter-protesters in multiple locations across the country in recent days, following a stabbing attack that killed three children and wounded 10 others in Southport, Merseyside, on 29th July. While some protests passed off peacefully, others escalated into senseless and violent disorder, resulting in physical damage to property, hundreds of arrests and injuries to over 100 police officers.

In his first major test since taking office just a few weeks ago, the prime minister, Keir Starmer, has chaired three emergency Cobra meetings this week, the most recent of which was held on Thursday to discuss emergency plans for the coming days.

Starmer blamed far-right instigators for circulating rumours and organising the violent protests, after misinformation about the teenager charged with the Southport attack circulated on social media. The potential involvement of state actors in the spread of disinformation is also being investigated.

Media regulator Ofcom published an open letter to social media platforms, urging them not to wait for enhanced powers under the Online Safety Act before taking action against the aggressive rhetoric that has been fuelling unrest in already tense times for the country.

The British Retail Consortium chaired its own emergency meeting with members, as the retail industry grappled with the damage caused by a wave of looting and vandalism, leaving some retail workers fearing for their safety. Some shops are still boarded up in parts of the country, which remains on high alert in case of new skirmishes.

Commercial insurance protection for strikes, riots and civil commotion has traditionally been included in many property all-risks commercial insurance policies and continues to be for many UK corporate buyers. However, a global rise in SRCC insurance claims, particularly since 2019, has contributed to an increased demand for specialist standalone political violence insurance.

“The conversation has shifted,” says Srdjan Todorovic, head of terrorism and hostile environment solutions at Allianz Commercial, in Airmic’s Political Risk in 2024 report. “It makes no sense to ignore a peril that has resulted in billions of dollars in losses over the past six years and is potentially increasing with the election cycle and the subsequent outcomes of those elections.”


SUGGESTED READING

Disinformation most urgent global risk
By Deborah Ritchie
The prevailing global risks landscape is one in which progress in human development is being “chipped away at slowly”, leaving businesses, states and individuals vulnerable to new and resurgent risks...

---