What Will and Won’t be Covered by Your Business’ Commercial Insurance Policy This Halloween

As superheroes, villains, and princesses celebrate Halloween by conquering neighborhoods across the Southwest, business owners should be mindful about possible insurance coverage exclusions this holiday. With everyone in costume and dressed up, identities masked, it is easy to see why vandals and robbers would choose Halloween as the night to commit a crime.

Fortunately, if your business and personal property is damaged on this night, you as a policyholder have the right to hire a public adjuster who will advocate for you on your behalf. Our public adjusters have assisted many clients with claims for damage that were likely caused by Halloween-goers.

We spoke to five of our property insurance experts from Globe Midwest/Adjusters International, Adjusters International/Basloe, Levin & Cuccaro and Jansen/Adjusters International to find out what types of claims likely will and won’t be covered under a standard commercial insurance policies:

Vandalism – “Yes, shattered windows, damaged signs and other types of physical property loss to a business’ building and grounds will generally be covered,” said Carl Gross, Vice President and CAO of Globe Midwest/Adjusters International. “Any electrical repair work, fires or lost profits due to an electrical system failure resulting from the defacement or will be covered.”

Fires – “Yes, repairs for damage from a fire caused by vandalized decorations, tipped candles and other destructive behaviors are covered under a standard insurance policy. Additionally, if a subsequent fire were to cause a loss of power to your facility, then the Business Income claim for revenues lost during this time period would be covered as well,” said Stephen Surace, Vice President and CFO at Adjusters International.

Theft – “Yes, stolen adornments, outdoor décor and signs will usually be covered since theft is characteristically a basic covered peril. The question a policyholder should ask themselves is whether or not the value of the stolen or damaged items warrants an insurance claim based on the business’ deductible under its purchased policy. Typically, it would not unless a business has a very elaborate & expensive display,” said Steven Vanuga, Regional Vice President of Adjusters International/Basloe, Levin & Cuccaro.

Snow – “Yes, if a snow storm were to strike and causes property damage to the roof or perhaps even a collapse, causing the business to close briefly, then this damage would be covered just as it would any other time,” said Surace.

Injury – “No. A standard commercial policy will not pay for injuries that were sustained in or around your property as a result of any shattered glass, fires or icy sidewalks. This is just as true on October 31 as it is the rest of the year,” said David Moore, Chief Operating Officer at Jansen/Adjusters International. “These injuries may be covered by the commercial liability policy of the business owner if that coverage is in place."