Business Interruption Insurance for Civil Unrest
When protests close your street, scare away customers or damage your shop, the repair bill is only part of the loss. The bigger hit is often the income you never earn while you are shut or half empty. Business interruption insurance is meant to cover that gap, but for civil unrest it works in narrower ways than most owners expect. This explainer shows how the cover is triggered, what is usually excluded and what to check in your own policy.
Key takeaways
- Business interruption cover (in France, perte d'exploitation) is usually optional and is normally triggered only by material damage to your own premises.
- Losses from customers staying away, curfews or blocked access are often excluded unless your policy has a specific extension.
- The indemnity period, the way gross profit is calculated and the waiting period decide how much you actually receive.
- Read your policy schedule now, while you can still ask your insurer or broker questions and adjust cover before the next disruption.
As of late October 2026, France is going through a wave of cost-of-living protests. A nationwide day of action on 17 October 2026 drew about 550,000 demonstrators according to the Interior Ministry and about 800,000 according to unions. Clashes, burned vehicles and damaged or looted shops were reported in several cities, including Paris, Lyon, Lille and Marseille, and partial curfews were imposed in some areas afterward. Further actions have been announced for 24 and 31 October, and five unions have called a national day of strikes and demonstrations on 5 November 2026.
For many small businesses, the question is no longer only "is my window covered?" but "who pays for the week I could not trade?" The answer depends almost entirely on the wording of your policy. This article explains the general principles, with a focus on France and notes for owners in the UK and US. It is general information, not legal or insurance advice: your contract and your insurer have the final word.
What business interruption insurance actually covers
Business interruption insurance pays for the loss of income and the extra costs you face because an insured event stops or slows your trading. It is designed to put you back in roughly the financial position you would have been in if the event had not happened. In practice, most policies cover some combination of:
- Loss of gross profit or margin: the revenue you lost, minus the costs you saved by not trading (for example, stock you did not buy).
- Continuing fixed costs: rent, loan repayments, salaries and subscriptions that keep running while you are closed.
- Increased cost of working: reasonable extra spending to limit the loss, such as renting temporary space, paying overtime or hiring security so you can reopen sooner.
In France, this cover is usually called perte d'exploitation and is offered as an optional guarantee inside a multi-risk business policy (multirisque professionnelle). In the UK it is usually called business interruption, and in the US business income insurance. The names differ, but the logic is similar.
Riot damage and business interruption are two different covers
Physical damage caused by riots and civil commotion (émeutes et mouvements populaires) is usually covered by multi-risk business policies, often with a deductible (franchise), limits and exclusions. That covers the broken glass, the burned awning and the stolen stock. Business interruption is a separate layer that covers the lost income. You can have the first without the second, and many small businesses do.
It is also worth knowing what does not apply. Riot damage is not covered by the French natural catastrophe (cat nat) regime, so there is no automatic state-backed cover for it. Vehicles are covered only if you have the relevant optional cover, such as fire, vandalism or all-risks.
The material damage trigger: the rule that surprises owners most
Most business interruption policies only pay if your loss of income follows material damage to your own premises from an insured event. In plain words: something at your site has to be physically damaged, and that damage has to be the reason you lost income.
This has big consequences during unrest. Consider three situations:
| Situation | Material damage at your premises? | Typical result under a standard policy |
|---|---|---|
| Your shop front is smashed and you close for repairs | Yes | Business interruption usually responds, subject to waiting period and limits |
| Your street is closed by police and you cannot open | No | Often excluded unless you have a denial of access extension |
| Customers stay away from the area for weeks | No | Usually not covered under standard wording |
| A local curfew forces early closing | No | Often excluded; check for an extension covering decisions by authorities |
The table is a simplified illustration. Every contract is different, and some insurers offer wider wordings.
Common mistake
Assuming that "business interruption" means any interruption. Owners often learn after the event that a quiet month caused by people avoiding the city center is not an insured event at all. If your income depends on footfall in a busy area, ask your insurer specifically how your policy treats loss of customers without damage.
Extensions that can widen the cover
Insurers sell extensions that relax the material damage rule. They are not standard everywhere, they come with their own limits and they are not always available for every type of business. The most relevant for civil unrest are:
Denial or prevention of access
This extension covers loss of income when access to your premises is blocked because of damage or danger nearby, for example damage to a neighboring building or a police cordon. Wordings vary a lot. Some require damage within a set distance of your premises, some require an order from a public authority and some cap the payout for a short period.
Action of competent authorities
Some policies cover losses when a public authority restricts access or imposes closure. Whether a curfew or a temporary ban on gatherings counts depends on the exact wording. Read the definitions carefully and ask for written confirmation if the language is vague.
Suppliers and customers extensions
These cover loss of income when a key supplier or customer suffers damage that disrupts your business.
How the payout is calculated
Even when cover applies, the amount you receive depends on a few technical terms in your policy schedule. Understanding them before a claim helps you avoid nasty surprises.
- Sum insured: the maximum the insurer will pay for the interruption. If it was set years ago and your business has grown, you may be underinsured.
- Indemnity period: the maximum length of time the insurer covers your loss, often 3, 6, 12 or 24 months. It runs from the date of the damage, not from the date you reopen.
- Waiting period or time deductible: the first days of loss you bear yourself before cover starts. In a short disruption, this can wipe out the whole claim.
- Basis of calculation: usually gross profit or margin based on your accounts. Insurers look at past trading and trends, so clean records matter.
- Average or underinsurance clause: if the sum insured is too low compared with your real gross profit, the payout can be reduced in proportion.
Hypothetical example
Imagine Clara runs a small clothing boutique in a city center. During a night of unrest, her window is smashed and stock is stolen. She closes for nine days while the glazier works. Her policy includes perte d'exploitation with a three-day waiting period and a 12-month indemnity period. Her insurer pays the lost margin for six of the nine closed days, plus the cost of a temporary security guard she hired to reopen sooner. The following month, sales are lower because shoppers avoid the area, but that part is not covered because her policy has no extension for lost customers without damage. The names and figures are made up.
What changed after the October 2026 unrest
After the 17 October 2026 violence, insurers extended the deadline to declare damage to 30 days, compared with the usual 5 working days for most claims and 2 working days for theft. France Assureurs, the insurance industry body, pledged faster payouts and advance payments. These measures apply to the damage declaration, which is also the starting point for any business interruption claim.
The think tank Fondation IFRAP estimated the bill for the violence on 17 and 18 October at about €1.1 billion, of which insurers would bear about €800 million. That is a provisional estimate and there is no official figure yet. Large claim volumes can slow down loss adjuster visits, so prepare your documents early. The site's separate guide to claiming for riot damage walks through the declaration step by step.
The French state can also be held liable for damage caused by crimes committed by gatherings under article L211-10 of the Code de la sécurité intérieure. Claims go through the préfecture or the courts and usually cover what insurance does not. Whether lost income can be recovered this way depends on the facts, so take advice if your loss is large and uninsured.
Pro tip
Start a simple "interruption log" from the first day of disruption: hours closed, reasons (damage, police cordon, curfew, staff unable to travel), daily takings compared with the same day last year and any extra costs. Even if part of the loss turns out to be uninsured, this record supports your insurance claim, any state claim and any later request for tax or social charge payment delays.
Questions to ask your insurer or broker now
Do not wait for the next day of action to find out what you bought. Call or email your insurer or broker and ask these questions in writing, so you have a clear answer on file.
- Do I have business interruption cover at all? Check the policy schedule, not just the brochure. Look for perte d'exploitation, business interruption or business income.
- Is riot and civil commotion an insured event for both damage and interruption? Some policies cover riot damage but exclude it from interruption, or apply a separate limit.
- Is material damage at my premises required? Ask whether any denial of access or authority action extension applies, and what distance and time limits apply.
- What is my waiting period and indemnity period? A long waiting period may make cover useless for short closures.
- Is my sum insured still correct? Compare it with your latest annual gross profit or margin. Ask whether underinsurance would reduce a payout.
- What records will you need? Ask which accounts, sales reports and proof of extra costs the loss adjuster will request.
- Can I add or change cover now? Insurers may restrict new cover for events already in progress or announced, so ask what is possible and from when.
Your business interruption checklist
- Find your policy schedule and confirm whether business interruption is included
- Check whether riots and civil commotion are covered for both damage and lost income
- Note your waiting period, indemnity period and sum insured
- Ask in writing about denial of access, authority action and supplier extensions
- Update your sum insured if your gross profit has grown
- Start an interruption log on the first day of any disruption
- Keep accounts, daily sales reports and receipts for extra costs easy to find
- Check the latest official information on service-public.fr and with your insurer and préfecture
Frequently asked questions
Will my insurer pay if I close my shop as a precaution before a protest?
Usually not. A voluntary precautionary closure without damage to your premises is normally not an insured event under standard business interruption wording. Some policies with authority action or denial of access extensions may respond if an official order closed the area, so check your contract and ask your insurer.
Does business interruption cover staff wages while I am closed?
Often yes, as part of continuing fixed costs or gross profit, if the interruption itself is covered. Some policies insure payroll separately or for a shorter period. Check how wages are treated in your schedule.
Can I buy business interruption cover now that protests have started?
You can ask, but insurers may refuse new cover or exclude losses linked to events already happening or announced. Even if cover is not available immediately, it is worth arranging for the future, since unrest, strikes and other disruptions can recur.
What if my loss is not covered at all?
Look at other options: a possible claim against the state under article L211-10 of the Code de la sécurité intérieure for damage caused by gatherings, and any support measures from the government. After the 2023 riots, the government offered tax and social charge payment delays. Check economie.gouv.fr, impots.gouv.fr, urssaf.fr, your préfecture and your chamber of commerce for current measures.
Related reading
The bottom line
Business interruption insurance can be the cover that keeps a small business alive after unrest, but only if it is in your policy and only within its terms. In most standard wordings, it needs physical damage at your premises, and losses from blocked streets, curfews or nervous customers fall outside unless you bought an extension.
Take an hour this week to read your schedule, ask your insurer the questions above in writing and fix any gaps you can. Keep a daily log if disruption hits, and check official sources for the latest support measures while the situation develops.
