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Insurance may cover looting, but consumers will pay

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Insurance may cover looting, but consumers will pay

Randle Frankel, who runs a commercial property insurance broker with clients throughout Los Angeles County, could only shake his head when several people looted shops over the weekend saying this would not hurt anyone because the business was insured.

Yes, most retailers are protected for such criminal activities, Frankel told me, but not necessarily for total damage or loss. As with all insurance, it depends on how much coverage they buy.

In addition, responsibility does not stop with insurance companies.

“If operators pay claims for losses of hundreds of millions, they will try and compensate,” Frankel said. “There will be consequences. Rates will go up. “

Higher insurance rates will definitely be passed on to customers in the form of higher retail prices, which means, going forward, higher out-of-pocket costs for shoes, clothing and other items obtained without a five-finger discount.

In other words, looting is not a victimless crime, because some have tried to argue in defense of such behavior.

This has very real consequences for business owners and, in turn, their customers. In the long run, we all pay.

“In my experience, after every event like this, there will be an increase in prices,” Frankel said. “Rates must go up.”

If it needs to be underlined, theft and vandalism have nothing to do with mostly peaceful protests over the death of George Floyd. This is criminal behavior, stop completely.

My colleagues Sam Dean, Laurence Darmiento and Ronald D. White did a good job of describing how not all landlords need commercial tenants to insure their inventory.

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As a general rule, they report, small business owners with up to 100 employees can spend $ 1,200 per year on protection. Larger companies, I say, pay significantly more than that.

But this is an extraordinary time. Because of the COVID-19 pandemic, many businesses let their insurance policies pass or reduce coverage because they have no money in for months.

“Many of my clients have cut back,” said Gino Mattunts, a commercial insurance broker based in Glendale. “There have been many cancellations.”

He also said theft insurance often came with a large deductible to make protection more affordable. The shoe shop owner who was destroyed by looters, in other words, may be on the hook for most of the loss.

Mattunts said, the possibility of insurance companies will issue new requirements for businesses in connection with the surge in theft and damage to this property.

“Think about what it’s like to walk at night in downtown L.A.,” he said. “Everywhere you look, you see a heavy steel gate. That’s because of past experience in the area. We can see that in the future throughout the city. “

Karl Susman, a commercial insurance broker at Brentwood, agrees that high security measures are possible.

However, first, he expects insurance companies to try to reduce their risk by adding business deductibles, making business owners absorb more financial risk.

They will also stop issuing new policies until they can take into account this latest development, Susman said.

I ask whether local businesses have no risk of looting that is reflected in their policies since the Rodney King riots in 1992, which caused about $ 1 billion in property damage. Hasn’t that changed the insurance landscape?

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“No,” Susman answered. “That hardly makes a blip in terms of level and deductibles because it’s so local.”

“What we see now is different,” he said. Recent property damage in some of the region’s most prosperous commercial districts far exceeds, in terms of geography, what was experienced by business owners in 1992. Similar dynamics occur in national commercial centers.

“It’s more like a brush fire,” Susman explained. “This is very broad, and the industry will respond with new steps.”

For consumers, the fire brush metaphor is a good one. Major fires in recent years may not have caused everyone’s homes to burn, but it has changed the way home insurance is offered in California.

Several insurance companies left the market, concluding that the danger of a country’s fire would only get worse. That still raises rates and reduces for almost all homeowners to reflect the reality of climate change that we are living in trouble.

“With home insurance, the tariff continues to rise because we are experiencing loss after loss after loss,” Susman said.

“We can now see the same thing for commercial insurance, and businesses will provide higher costs to customers.”

Mitch Davis, a commercial insurance consultant based in Austin, Texas, told me that no coverage service provider will now begin to weigh heavier theft and vandalism in setting rates.

“Insurers have already included exceptions for infectious diseases due to coronavirus,” he said. “We have never really seen that before. The same thing will happen because of looting. “

His advice for businesses that lack money is not to file relatively small damage claims, such as broken windows.

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“By absorbing the loss, you might be able to avoid a rate hike in the short term,” Davis said. “In the long run, tariffs and deductions will rise.”

Tony Cignarale, California’s deputy commissioner of consumer services insurance, said the possibility of tariff increases for businesses – and thus higher prices for consumers – was very real.

“We are monitoring minute by minute and trying to find out where rates will go in the future,” he said.

Spoiler warning: Above.

Enjoy new kicks, looters. We all pay for it.

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Portuguese historical films will premiere on 29 December.

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Portuguese historical films will premiere on 29 December.

Method Media Bermuda will present the documentary FABRIC: Portuguese History in Bermuda on Thursday, December 29 at the Underwater Research Institute of Bermuda.

A spokesperson said: “Method Media is proud to bring Bermuda Fabric: Portugal History to Bermuda for its 5th and 6th showing at the Bermuda Underwater Observatory. In November and December 2019, Cloth: A Portuguese Story in Bermuda had four sold-out screenings. Now that Bermuda has reopened after the pandemic, it’s time to bring the film back for at least two screenings.

“There are tickets Ptix.bm For $ 20 – sessions at 15:30 and 18:00. Both screenings will be followed by a short Q&A session.

Director and producer Milton Raboso says, “FABRIC is a definitive account of the Portuguese community in Bermuda and its 151 years of history, but it also places Bermuda, Acors and Portugal in the world history and the events that have fueled those 151 years.

“It took more than 10 years to implement FABRIC. The film was supported by the Minister of Culture, the Government of the Azores and private donors.

Bermuda Media Method [MMB] Created in 2011 by producer Milton Raposo. MMB has created content for a wide range of clients: Bermuda’s new hospital renovation, reinsurance, travel campaigns, international sports and more. MMB pays special attention to artistic, cultural and historical content.

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CRISTANO RONALDO CAN MAKE UP A GIANT IN CARIOCA AND PORTUGUESE TECHNICIAN SAYS ‘There will be room’

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CRISTANO RONALDO CAN MAKE UP A GIANT IN CARIOCA AND PORTUGUESE TECHNICIAN SAYS 'There will be room'

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Maestro de Braga is the first Portuguese in the National Symphony Orchestra of Cuba.

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Maestro de Braga is the first Portuguese in the National Symphony Orchestra of Cuba.

Maestro Filipe Cunha, Artistic Director of the Philharmonic Orchestra of Braga, has been invited to conduct the Cuban National Symphony Orchestra, as announced today.

According to a statement sent by O MINHO, “he will be the first Portuguese conductor to conduct this orchestra in its entire history.”

In addition to this orchestra, the maestro will also work with the Lyceo Mozarteum de la Habana Symphony Orchestra.

The concerts will take place on 4 and 12 March 2023 at the National Theater of Cuba in Havana.

In the words of the maestro, quoted in the statement, “these will be very beautiful concerts with difficult but very complex pieces” and therefore he feels “very motivated”.

From the very beginning, Rachmaninoff’s Piano Concerto No. 2 will be performed by an Italian pianist (Luigi Borzillo), whom the maestro wants to bring to Portugal later this year. In the same concert, Mendelshon’s First Symphony will be performed.

Then, at the second concert, in the company of the Mexican clarinetist Angel Zedillo, he will perform the Louis Sfora Concerto No. 2. In this concert, the maestro also conducts Tchaikovsky’s Fifth Symphony.

“This is an international recognition of my work. An invitation that I accept with humility and great responsibility. I was surprised to learn that I would be the first Portuguese member of the Cuban National Symphony Orchestra. This is a very great honor,” the maestro said in a statement.

“I take with me the name of the city of Braga and Portugal with all the responsibility that goes with it, and I hope to do a good job there, leaving a good image and putting on great concerts. These will be very special concerts because, in addition to performing pieces that I love, especially Rachmaninov and Tchaikovsky, I will be directing two wonderful soloists who are also my friends. It will be very beautiful,” concludes Filipe Cunha.

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