Late last week, ISO’s Property Claims Service assigned a CAT number to losses resulting from recent protesting and rioting. The CAT period assigned by PCS covers the period May 26 to June 5.

Following the death of George Floyd on May 25 while in the custody of Minneapolis police, organized protests and largely unplanned riots continued across the U.S. into the weekend. Agents should specifically note on the loss notices if a particular claim is the result of the riots during the stated dates so the carrier can assign the CAT number for data gathering purposes.

Standard insurance policies usually cover damage that results from rioting, looting, vandalism and civil commotion, including damage caused by rioters, as well as damage caused by the reactions of police and civil authorities.

An American Property Casualty Insurance Association spokesperson told CNBC that riots and riots attending a strike are “named perils” in property policies, unless it is excluded by some special surplus lines form, and would be included on an “all-risk” policy as those are broader.

The term “CAT event” applies to large-scale man-made or natural disaster that will result in claims reaching at least $25 million. The largest riot-related insurance losses came after the 1992 Los Angeles riots, according to the Insurance Information Institute, when insurers paid policyholders $775 million for damages.

ISO is a leading insurance standard-setting organization and a prominent source of information about property-casualty insurance risk.

Will Jones is IA managing editor.