In recent days, news reports from across the country have highlighted retailers boarding their buildings. These dealers try to limit damage caused by rioters after the election.
From an insurance perspective, the most important coverage issues are:
- Civil unrest
- Uprising and even
The question becomes, if your retail property is damaged by any of the above conditions, is there coverage? Unfortunately, no (or very few) coverage questions are answered with a simple "yes" or "no."
Simply put, yes, there are the causes of loss of the Insurance Service Office (ISO) – special form (CP 10 30) for loss caused by dissatisfied groups after the election ̵
1; regardless of which of the above terms is used.
However, we will try to break down each edition and explain the circumstances why coverage may not exist:
Note that riots are not excluded in CP 10 30. In the special form a loss is covered if it is not explicitly excluded. As further evidence, the Broad Named Peril form (CP 10 20) specifically covers damage caused by riots; it is illogical to think that a named form of risk would provide more coverage than an open form of risk. Thus, damage caused by riots is covered in the unapproved CP 10 30.
This term does not exist in any ISO cause of loss form, which is covered or excluded. As this is not ruled out, all damages resulting from "civil unrest" must be covered. But what is "civil unrest"? In essence, it can be classified with riots. The broadly named risk policy uses the term civilian resurrection – which is specifically covered. Again, damages caused by civil unrest (civil resurrection) are covered by the unapproved CP 10 30.
War & Insurrection
These exceptions raise some eyebrows as both causes are specifically excluded in the specialty Form (CP 10 30):
War and military action
- War, including undeclared or civil war;
- War-like act by a military force, including measures to prevent or defend against an actual or expected attack by any government, sovereign or other authority using military personnel or other agents; or
- Rebellion, revolt, revolution, power as an invasion or measures taken by government authorities to prevent or defend against any of these.
Can bad content measures be considered war? It is unlikely that such acts fulfill the intent or meaning of the elimination of war.
War is defined in part by the Black & # 39 ;s Law Dictionary to mean, “hostile conflict using armed forces, waged between countries, states or rulers. …. ”Note that a war involves and requires organized and armed government agencies with a common agenda.
Participants in these protests and riots are largely unrelated groups without a common leader, direction or goal. The measures do not seem to be in the sense of war, nor do they seem to activate the elimination of war.
But do these actions qualify as a "rebellion" that triggers the rebellion's part of the exclusion? First, what is a rebel and who is a rebel?
- Rebellion : A violent rebellion against an oppressive authority, usually a government. "Rebellion differs from accidents, riots and offenses in connection with bullying violence in that there is an organized and armed uprising against government or government operations during the uprising, while crimes that grow out of bullying violence, no matter how serious they are and how many participants are complete simply illegal acts that disturb peace that do not threaten the stability of government or the existence of political society. "(Black & # 39; s Law Dictionary)
- Insurrectionist : A person who participates in an armed rebellion against the constituted authority (especially in the hope of improving conditions) freedom fighter, rebel, rebel.
Based on the presumed purpose of the threatened protests, the actions do not appear to qualify as rebellion, nor are the participants rebellious. The different groups are not necessarily organized and often do not have a single goal. Note again the meaning of "rebellion" taken from Black & # 39 ;s Law Dictionary.
Two legal concepts also apply to limit the application of the exclusion from the uprising: Noscitur A Sociis and / or Ejusdem Generis . Both concepts essentially say that a term in a list is judged by the words around it and is not given its broadest possible meaning. More specifically, these terms are defined as follows:
- Ejusdem Generis : Latin meaning, "of the same kind." In the construction of contracts, when certain things are enumerated, and then a phrase is used that can be interpreted as including other things, it is generally limited to things of the same type. General words should not be interpreted to their fullest extent, but they should only be considered to apply to persons or things of the same general kind or class as they are specifically mentioned.
- Noscitur A Sociis : Latin for, "The meaning of a word can be felt by its accompanying words." The word or phrase is defined in its context.
Based on these legal concepts and given the context of the term "rebellion", it is clear that the exclusion only applies when there is armed conflict in an attempt to rebel and / or overthrow. a government through the actions of another recognized government or militia. Although the "overthrow of the government" is a stated goal of one of these protest groups, they are not a government or state sanctioned group, they are just crazy because they did not get their way.
We understand that the whole language can be confusing, but the short answer is, "yes" you are probably covered. And we are here to answer any questions you may have – just give us a call.
Do not let news media accounts about "insurance issues" scare you.
As mentioned earlier, there does not appear to be a specific exception in ISO's non-approved CP 10 30 (Causes of Loss – Special Form) applicable to any protests arising from the election result.