It has been reported that insurers could be left seriously out of pocket due to business interruption (these are legitimate losses following a loss covered by insurance) claims not being met by the Metropolitan and Merseyside police forces. They believe that the Riot Damages Act does not cover these losses despite the fact that the claims account for approximately 40% of the total riot bill. It could be that insurers will be forced to take legal action but either way the knock on effect could potentially increase commercial insurance and liability insurance premiums for businesses already struggling in the current economic climate. There is also a real danger that customers who buy shop insurance or restaurant insurance for example, will cut corners or retract cover in the belief that “it won’t happen to them”. Simply put, whilst a client may cover their business stock and contents etc, which is fine, few realise the effect of not being paid whilst their premises are reinstated – which can take months or years. Similarly, there is a temptation to avoid public and employers liability insurance – this to can lead to the dramatic failure of a business and could even result in legal investigation if negligence is found to be proven against the owners. As there seems to be no end in sight of economic instability there is a distinct possibility that civil unrest could rear it’s ugly head again. With this prospect looming, business insurance customers ( including those shops that would consider themselves as non-target or low risk such as furniture shops, as demonstrated in London this year) would be strongly advised to review their existing insurance arrangements to ensure that they are robust and offer complete protection. If necessary, painful though it is, much consideration should be given to invest in additional coverage. It could prove to be an investment rather than a gamble. It would take a brave business owner to bet against it.