In the aftermath of Hurricane Katrina, there were a lot of reports – and photos – of lootings going on in the ravaged areas. While there is no legal difference between stealing a bottle of drinkable water and a big screen television, there are certain moral differences between the two. Is one more acceptable than the other? What do insurers think? Your clients might be wondering what would happen if their homes or businesses were looted. As their insurers, you should share this information with them.

The bottom line is that any looting is typically covered in an insured's homeowners' or business policy. While we rarely see destruction in Canada that is comparable to the Hurricane Katrina damage, lootings are not uncommon.

In the August 2003 blackout which left much of Ontario without power for days, looting was quite prevalent. Ottawa Police Chief Vince Bevan said that there was serious looting going on in that city. Damages to property and losses from looted goods are covered by most policies; however, with careful risk management planning, some of these losses could be avoided in the first place.

Consider sharing with your insureds some of the following risk management tips.

For all insureds:

• Ensure all doors and easily-accessible windows remain locked.
• Keep all valuables locked in a safe or with you.
• Keep an inventoried list of goods, serial numbers and value off of your premises.
• Invest in a monitored alarm system or motion lighting.

For business owners:

• Ensure all electronic information is backed up and in a safe and secure location.
• Consider having security on the premises to keep your business safe.
• Issue as few keys as possible. Whenever a key is lost, or an employee leaves the firm without turning in his or her key, re-key all doors.
• Arrange window displays so police patrols or passers-by can see clearly into the building.

Local police officials are good sources of information. If an insured is unsure of crime prevention strategies, they can contact their local law enforcement office to find out more information.