Riots following George Floyd’s death may cost insurance companies up to $2B
Riots sparked by the police killing of George Floyd could cost insurance companies $1 billion to $2 billion — possibly making them the most expensive in US history, an industry group says.
The potentially record-setting insured losses piled up as the demonstrations sometimes descended into looting, arson and vandalism in more than 20 states across the country from May 26 to June 8, according to the Insurance Information Institute.
“It’s not just happening in one city or state — it’s all over the country,” Loretta L. Worters, a spokeswoman for the group, told Axios, which first reported on the estimates Wednesday. “And this is still happening, so the losses could be significantly more.”
The cost of the damage could surpass that of the 1992 Los Angeles riots following the acquittal of the cops who beat Rodney King. That violence led to $775 million in insured losses at the time, or more than $1.4 billion in today’s dollars, according to the institute known as Triple-I.
The violence sparked by Minneapolis cops’ killing of Floyd was the first “multi-state catastrophe event” ever declared for civil disorder by claim-tracking company Property Claim Services, Triple-I has said.
Past civil catastrophes — events that caused at least $25 million in insured losses — unfolded in individual cities, such as the 1967 Detroit riots or the 1977 New York City blackout, according to the group, which noted that standard business-owner and homeowner insurance policies cover riot-related damages.
But the costs of this year’s riots will reportedly be dwarfed by natural disasters that have hammered parts of the country. Hurricane Isaias is expected to cost $3 billion to $5 billion in insurance losses, while the tab for the just-started wildfire season is already at $1.5 billion, Axios reported.
Losses from the riots, “while severe, would not have [an] impact on the financial stability of the industry,” Worters told The Post in an email. “… Hurricanes however, could have a considerable impact on the insurance industry as could the wildfires.” Cravens Article
