The Ministry of the Economy figures at 700 the number of businesses attacked and looted since the start of urban violence on Tuesday June 27 in France. This is only a provisional assessment and the bill promises to be steep for insurers as well as for certain policyholders.
Article written by
Posted
Reading time : 1 min.
:quality(50)/2023/07/03/64a26464c1d25_mort-de-nahel-nuit-de-violences-urbaines-a-brest.jpeg)
It is a figure with the ladle: 250 tobacconists, 250 bank branches, some 200 retail stores, to which must be added many other small businesses. No figures have yet been put forward, but all the victims are already asking themselves the question of compensation. Not easy to decide because we are not in the classic disaster like fires or water damage. Acts of vandalism fall into a completely different register.
Fire or theft are listed as basic risks generally covered by professional multi-risk contracts. This is not the case with regard to the operating losses caused by the closure imposed on the destroyed businesses. We experienced the same situation during the Covid pandemic with stores and restaurants forced to close at the request of the State. There was no claim, just an administrative obligation but resulting in a loss of earnings.
Difficult to cover by insurance
According to the France Assureurs federation, only one out of two businesses is today insured against operating losses caused by a prolonged closure. So only one in two businesses affected by the violence since the start of the looting can be compensated until the reopening. For merchants not covered, between broken windows to be changed, gutted iron curtains, thefts and other interior damage to be repaired, the reopening is not for tomorrow and the bill promises to be steep. Hence the appeal of the Minister of the Economy to insurers to show benevolence.
Insurance professionals assure that they did not wait for Bruno Le Maire’s call to react, but the matter is not that simple! Extending reporting deadlines is one thing, reducing deductibles is another economically. It all depends on the signed contracts. The same goes for cars: if your vehicle has been destroyed and you have taken out an “all-risk insurance” contract, compensation will be automatic and full. But with any other contract that does not include vandalism coverage, you will be out of pocket.
Possible and complicated appeal
In the event of damage not covered, one can always turn against the State, which is civilly liable for damage resulting from offenses committed by mobs. This is what the internal security code provides, but the procedure is cumbersome and long to complete.