Coronavirus-Rattled Insurance Industry Faces Onslaught Of Riot Damage Claims
Partner and chair of Herrick's Insurance & Reinsurance Group, Alan Lyons, was quoted in an article in Bisnow discussing the insurance options for businesses with commercial property damage from recent protests around the country.
Insurance premiums may go up, said Lyons. “It may well be that insurers may consider the risk of damage caused by rioting and civil commotion … may be a more common event going forward,” he said. “They may increase the premium on renewal policies on all policies because of the perceived increased risk of this type of event happening in the future.”
"Insurance companies will look at each individual client separately and determine their rate changes based on their location as well as their claim history, Lyons said. The local nature of the claims will require the insurance industry to put boots on the ground right after the threat of local violence wanes. "