Vandalism and looting in 2020 will cost insurance industry from $1 billion to $2 billion in claims

by Karen Faulkner, Worthy News Correspondent

by Karen Faulkner, Worthy News Correspondent

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(Worthy News) -It is estimated the insurance industry will have to pay between $1 billion and $2 billion in claims related to vandalism and looting that followed the death of George Floyd at the hands of Minneapolis police on May 25, Axios reports.

According to PCS, a unit of Verisk Analytics, insured losses pertaining to the unrest this year are expected to significantly exceed the prior record set by claims pertaining to the 1992 Los Angeles demonstrations: rioting broke out after police officers were acquitted for beating unarmed black man Rodney King to death that year.

While previous crises on this scale were limited to one particular city, Axios notes, the unrest in 2020 took place in 140 cities across 20 states. “Not only is this the first, this is the first — kind of with a cymbal crash,” Head of PCs Tom Johansmeyer told Axios.

Importantly, although insurance policies do not protect companies from the impact of COVID-19, most policies definitely cover claims related to vandalism and looting.

Moreover, Axious says, the insurance industry is bracing itself for possible unrest following the presidential election on November 3. “There could be riots that lead to significant losses that would meet our reporting thresholds,” Johansmeyer said.

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