Protests have the potential to break out for any number of reasons or issues. While many protests are peaceful and without incident, in other situations, violence and property damage can occur to local businesses whose properties are caught in the crosshairs. Knowing who is responsible when protestors cause damage to a commercial property can help business owners better understand their rights and insurance coverage options.
Commercial Property Damage Caused by Protestors
Protesting refers to the public expression of objection or disapproval towards an idea or action that often stems from political issues. While these events are nothing new, a recent study found that between 2006 and 2020, the number of protest movements globally had more than tripled in less than 15 years.
While the right to assemble is protected by the First Amendment, protests can occasionally turn violent and destructive to property – including businesses in the immediate area. For business owners, grappling with the fallout of a destructive protest can be incredibly challenging and leave them wondering who is responsible for the damage.
Under Texas law, a person can be held liable for causing property damage knowingly and intentionally. When this happens, business owners have the right to file a lawsuit against them for up to two years from the date of the event. However, it can be incredibly difficult to recover financial compensation for the damage from an individual protestor. This is because it is rare to be able to identify who the responsible parties are, especially if the incident occurred when the business was closed. Even in situations where those responsible for the damage are identified, it is unlikely business owners will receive a payment sufficient to recover from the damage.
Because of these difficulties, regardless of who is responsible for protest-related property damage, commercial property owners largely seek recovery by filing an insurance claim to recoup the damage costs.
Insurance Coverage for Protest Damage to a Commercial Property
When reviewing insurance coverage options for protest-related property damage, policyholders need to keep in mind that the coverage available will ultimately depend on the specific terms of each policy. Because of this, certain policy endorsements can be purchased in addition to a commercial property policy to help expand coverage for certain events.
Several different types of insurance coverage can aid commercial policyholders in recouping the costs of property damage resulting from a protest, including:
- Commercial Property Coverage: Damage to a business’s location and the contents inside it are generally covered from losses due to fire, riots, civil commotion, and/or vandalism under a commercial property policy or a business owner’s policy. While this coverage is seemingly broad, certain specifics may not be covered depending on the scope of the damage. Glass breakage, for instance, can be covered more extensively through the purchase of a glass coverage endorsement.
- Civil Commotion Coverage: Coverage for commercial property damage caused by a civil commotion is generally granted under a commercial property policy. Often, however, the owner of the business using the property is not the same person or entity who owns the building. The owner of the physical structure or landlord is the one who will ultimately receive the loss benefit under the coverage for damage to the structure itself. Despite this, the businesses at the premises – or tenants – may also need additional coverage for losses sustained to the business itself or other losses caused by the civil commotion.
- Business Interruption Coverage: Protest-related property damage has the potential to make it nearly impossible for a business to operate as normal, while ongoing overhead costs continue to accumulate. In these situations, commercial property owners may purchase business interruption policies to recoup some of the costs associated with running a business. A business interruption policy will help cover lost income, payroll, and other business-related expenses the company may accrue while the property is being repaired. Business interruption coverage is only triggered when physical damage is present. Meaning, that if a business closes due to a protest but sustains no physical damage, a business interruption claim would likely be denied.
- Civil Authority Coverage: Civil authority coverage may also be implicated in these situations in the event government officials require a business to close during a demonstration, protest, or riot.Â
- Glass Coverage: Despite being one of the most common types of damage that occurs due to protests, not all standard commercial insurance policies cover broken glass. Additional coverage for glass breakage can be obtained through the purchase of a glass coverage policy.Â
- Commercial Auto Coverage: Under most commercial property policies, damage to commercial vehicles owned by the business is generally not covered. Purchasing a commercial auto policy can help businesses obtain reimbursement for damage to company vehicles and their contents caused by fire, falling objects, natural disaster events, vandalism, and/or riots.
Insurance Coverage Attorneys
While protests can help bring about awareness and change for many important issues, they also have the potential to result in property damage to local businesses. This property damage can be devastating and difficult for businesses to recover from. Even when claims for property damage are filed, insurance companies can choose to deny, delay, or underpay them, leading to more frustrations and financial headaches for business owners.
At Raizner Slania, our insurance coverage attorneys counsel and represent business owners and other commercial insurance policyholders whose valid commercial property damage claims have been needlessly denied, delayed, or underpaid by their insurance providers. If you need assistance with a claim for your commercial property, contact our experienced commercial property damage lawyers today for more information.