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More hurdles for Riot Act reforms

We wrote recently about the proposed amendments to the Riot (Damages) Act which were announced in this year’s Queen’s Speech. This follows the terrible incidents in August 2011 and the ongoing problems some still face in receiving compensation.

The changes to the Act are likely to face significant opposition, particularly because one of the proposals is to cap the size of businesses eligible for compensation. The government wants to place a limit of £2 million turnover for making a claim against the police. So this would exclude all but the smallest businesses and in particular many retailers – and these were some of the most high profile victims of the riots in 2011.

The Association of British Insurers (ABI) has responded very strongly, stating that the proposed changes to the law would leave only the smallest businesses in a position where they could claim compensation. The ABI also warns this could lead to insurance companies introducing high excesses for riot cover or even excluding it altogether.

I reckon it’s going to be a rather rocky road. We’ll keep a close eye on what happens.

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