In brief

• Insurance companies in Europe are narrowing coverage for damage caused during riots and protests.
• The reason is the rise in social unrest this year.
• Business owners whose property is located in areas exposed to riots should check the scope of their policies.

Rising risk and the industry's response

This year, social unrest has intensified across Europe, which has translated into growing risk for the insurance industry. Insurers, who must pay compensation for destruction caused during protests and riots in cities, have begun narrowing the scope of their obligations. According to Bloomberg, companies want to reduce their exposure to losses of this kind. (Firmy ubezpieczeniowe ograniczają zakres ochrony z powodu wzrostu ryzyka zamieszek w Europie – Puls Biznesu)

What it means for businesses

The changes concern primarily coverage for damage inflicted during riots. Owners of shops, warehouses and offices located in places exposed to street riots should check whether their policies cover damage caused by assemblies and riots.

Why it matters

Insurers limiting coverage affects the cost of running a business and decisions about where companies are located. The changes particularly concern sectors that most often bear losses in urban shopping centres and industrial areas.