France's riot damage doubles: Who will pay for thousands of wrecked shops?
At least 3,000 French shops were hit over the weekend. Insurers say they are mobilised, but lost trade may not be covered. Here is who pays the riot bill.
By the weekend, at least 3,000 shops across France had been damaged in a wave of riots, nearly double the initial estimate. Insurers, expected to bear much of the financial burden, remain uncertain about the total costs. France's insurance federation has mobilized its members to support affected policyholders, but has not provided an initial loss estimate or the number of filed claims.
French markets suffered a decline following the rise in the damage bill, with the CAC 40 falling 1.1% and several major companies, including Carrefour and LVMH, seeing share price drops. Insurance stocks also declined as a result of the riots. France's recent benchmark for such events, the 2023 riots, resulted in €793 million in insured losses, with the vast majority covering shop and business damages.
However, a subsequent inquiry estimated the total property damage to be closer to €1 billion. Unlike previous riots, there is currently no national insurance scheme in place to cover the damages, leaving businesses to rely on their existing insurance policies. While some policies include coverage for "riot and civil commotion," lost trade, or lost sales, is often not compensated unless the shop was forced to close due to damage.
The French government is offering temporary support in the form of furlough for affected employees and targeted curfews, but the overall bill for the riots remains unknown and will likely extend beyond the damaged shops.
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