Over the last couple of weeks, nearly every American city has seen some kind of organized protest in response to the killing of George Floyd in Minneapolis on May 25, 2020. Many demonstrations were conducted peacefully and some of them, unfortunately, resulted in thousands of dollars of damages to corporate and local businesses due to looting.
If this has happened to you, please understand that you’re not alone. Though the future might seem somewhat dark at the present moment, there are resources out there that can help get you back up on your feet and open your company for business again. So, if you’re searching for assistance during these trying times, check out these tips for business owners who are looking to reopen after being looted.
Assess Your Damages
The first thing you want to do as a small business owner is to start totaling up how much you lost during the looting. This will probably take a considerable amount of time and might even cause you some emotional pain. Sifting through the wreckage of your business is going to be difficult, but it is essential to maximizing your compensation down the line.
Start a detailed list of all of the damages along with the estimated costs for their replacements as soon as possible. One thing to keep in mind is that you should include, literally, everything you’ve lost, no matter how small. Business owners often forget to include the small stuff when totaling up their losses, but believe us, it adds up over time. Even if a candy jar was smashed during the looting, make sure that you include it with the rest of the damaged inventory.
Also, file a police report immediately. This will help expedite the insurance process and save you some headaches in the future.
Will Insurance Cover Your Looting Claims?
This is the question on every business owner’s mind after they’ve been looted, and the answer is complicated. Most business owners are required by their lease agreements to have some kind of property insurance. But often, the kind of insurance is left up to the owner. This means that there is a lot of variation when it comes to compensation for damaged items during a looting.
So the first thing that you want to do is reexamine your insurance policy. According to a recent article in Insurance Business Magazine, the Insurance Information Institute has claimed that most business property insurance policies include coverage for damages incurred due to “riots or civil commotion.” Remember, it’s important that you look for this specific phrase or one very close to it in your insurance policy to be sure.
The article also discusses business interruption insurance, which can cover lost income due to rioting. The author states, “Business interruption coverage… which covers lost income… is… triggered when the insured business incurs direct physical damage or the government shuts down an area due to property damage caused by a peril covered by the company’s insurance policy that prevents customers or employees gaining access to the premises.”
So the good news is that you could be covered for your lost income as well as your property damages. The bad news is that this might depend on whether your insurance company believes that your losses meet the above criteria. Bottom line, examine your insurance policy and get on the phone with your insurance provider today.
Reach Out for Some Help
If your insurance company is giving you the runaround and you need a cash injection immediately, then consider funding from a trusted partner like FundKite. FundKite can provide you with the capital you need to reopen your business on your schedule. Waiting for your insurance company to pay you out months from now is useless if your business can’t operate in the meantime.
That’s where FundKite comes in. FundKite can provide you with funds from $100,000 all the way up to $2,000,000. Also, the application process is completely painless and most approvals take only three hours to be accepted. FundKite can even provide you with next day funding!
So don’t take on the burden of reopening on your own. Reach out for some help today and see how FundKite can help you reopen the right way.