Insurance may not cover riot damage, lawyer warns
Riot damage to construction sites may not be covered by contractors’ insurance, a lawyer has warned after a week of far-right violence across the UK.
Many contractors all risk insurance (CAR) policies do not cover intentional damage, Fenchurch Law managing partner Joanna Grant told Construction News.
Her warning comes after seeing a policy that excludes damage caused by “malicious persons”, a definition that may encompass riot damage.
Police anticipate more far-right demonstrations over the weekend. Grant urged contractors who think their sites might be at risk of damage to check the terms of their cover.
She added that many CAR policies may also have terrorism exclusions, which may mean contractors cannot claim compensation for damage committed for political purposes.
“There is a question of where one draws the line between a riot and a civil commotion or civil disturbance,” she said. “So I imagine there could be some interesting arguments to be had about the extent to which the rioting we’re seeing at the moment tips into what might be called a civil commotion.”
Grant also said contractors should make sure they take the right steps when notifying their insurance provider.
She said: “I’ve certainly seen a requirement that damage caused by a riot has to have been reported to the police [in order to make a claim], so care will need to be taken that the claims are properly notified.”
Contractors who fail to gain compensation from their insurer may be able make a claim under the 2016 Riot Compensation Act, although Grant added this would only provide cover for the damage to property and not for project delays.
Unrest started after a vigil for three children killed at a dance class in Southport in July, following misinformation about their attacker on social media. The violence spread to other cities over the week, with around 500 people arrested so far.
Rioters targeted an Esh Construction housing scheme in Middlesborough earlier this week, although an Esh spokesperson said the damage has not caused delays to the build schedule.
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