US businesses prepare for social unrest

With votes still being counted and several swing states yet to declare results, the results of the 2020 US election remain unclear at the time of writing. Both President Trump and his Democratic opponent Joe Biden say they are on course for victory.

There is anticipation the result could prompt social unrest. According to Reuters, retailers and other merchants across the have been taking out political violence protection in anticipation of possible street violence after the election result is declared. The cover protects buildings from damage caused by riots and civil commotion.

Many shops and offices are facing double-digit premium hikes for such policies but are buying them anyway because the cost of not doing so might be higher, industry sources told the newswire.

It follows widespread damage in major US cities, including New York, Los Angeles and Portland, in May and June following the police killing of George Floyd, a black man. Aggressors damaged buildings under the cover of peaceful demonstrations.

Sales of commercial policies that cover damage from societal unrest in the US doubled in October from September levels, insurers and brokers said.

That is partly because some providers, stopped including “strikes, riots and civil commotion” (SRCC) coverage within general property policies for businesses such as retailers and pharmacies that were already hard-hit by civil commotion, forcing them to buy separate standalone insurance coverage.

Similar exclusions have also been introduced in parts of Asia that have experienced significant unrest in recent months, including Hong Kong. Capacity is also limited for standalone political violence, with double and sometimes even triple-digit rate increases.