MILESFORTIS

This is goobermint at its finest. I almost want to call it intended consequences because anyone in their right mind would and should expect this.

The Multnomah County District Attorney’s Office has declined to file charges in 70% of the protest-related cases that have been referred to them since May, although District Attorney Mike Schmidt has said he would pursue cases that involve “deliberate” property damage, theft or force against another person or threats of force. [but guess what. He Has’nt]

Insurers balk at covering Portland businesses; brokers say downtown upheaval has made carriers wary

Eric Murfitt watched helplessly from a live security feed as looters trashed his downtown clothing store, Mercantile, during a riot on May 30. Murfitt said the business suffered $1 million in losses due to the break-in and had to file an insurance claim to stay afloat.

But in November, Murfitt was informed that his insurance carrier would not be renewing the store’s policy. Nearly a dozen other insurance companies declined to even offer Mercantile a quote.

So earlier this month, Murfitt settled for a policy that nearly quadrupled his premium, had a significantly higher deductible, included a much smaller cap on coverage related to robbery and excluded any property damage related to civil unrest.

Commercial insurance premiums were rising even before the coronavirus, while coverage was decreasing. The pandemic exacerbated those trends. Premiums for commercial property and casualty insurance increased by an average of almost 11% in the second quarter of 2020 , according to the Council of Insurance Agents & Brokers.

But brokers say insurance companies have become particularly wary about covering Portland businesses, especially those downtown, as ongoing protests have given the city a reputation for upheaval and led to a spike in vandalism and destruction, often committed by a small group of people. Brokers say this trend could be transitory and better coverage opportunities might resume quickly if the level of risk perceived by insurance companies changes.

Insurers’ apparent reluctance to cover Portland businesses is another indication of how severely this year’s turbulence has affected the city and its image.

And it represents another hurdle for small business owners, who are trying to overcome the pandemic’s profound effect on shopping and work habits and the physical damage from sporadic attacks on storefronts.

Jessica Getman, president of Brown & Brown Insurance Northwest, said that some insurance carriers have placed moratoriums on issuing new commercial insurance policies or increasing coverage for existing customers in downtown Portland, creating a barrier for anyone trying to open a new business. She said it is not uncommon for carriers to place temporary pauses on issuing new policies in areas where there is a perceived increased risk, such as when there are wildfires nearby.

While Getman said most insurance carriers aren’t walking away from existing customers in downtown Portland, she said owners who have had to file claims for property loss and damage this year could have a harder time renewing their policies or finding affordable options that offer property coverage. Business owners both in downtown and elsewhere in Portland where there have been instances of vandalism say they’ve run into this issue.

“The civil unrest and riots that have occurred have put Portland on the map,” Getman said. “We’re talking about insurance carriers that not only have a footprint here in Oregon, but nationally, and many are based outside of Oregon. So, they are seeing all of this heightened awareness of crime and damaged buildings over the news. That has made carriers more sensitive.”

Leah Andrews, a spokesman for Oregon’s Department of Consumer and Business Services, said the state was not aware of a rollback in coverage being offered in downtown Portland, but added that insurers may revisit coverage decisions when a policy holder makes more claims than expected.

Barb Schimmel, a senior sales executive at WSC Insurance, is the broker who worked to find Murfitt a new policy after his previous insurer declined to offer a renewal.

Schimmel said it’s common for insurance carriers to decline to offer new policies to businesses located near an active wildfire, or near an area where there has been a recent earthquake or warnings for tropical storms and floods.

But she recently received a notice from an insurance carrier saying they would not offer a new policy to a business they did not already insure or offer increased coverage to a business they currently insure if it operated “within 5 miles of active riots/looting.” Schimmel said it was not clear how the carrier would define those terms.

The large protests that occurred in Portland nightly throughout the summer have become less frequent, but there have still been recent instances of vandalism to businesses downtown and elsewhere in Portland committed by people who have broken off from larger groups of protesters.

“When there is a company that is considering offering a brand new policy to a new business, there’s more scrutiny,” Schimmel said. “They will certainly look at the news and the headlines. These are typical underwriting parameters. They’ll look at what’s the level of risk and do we want to share that risk?”

Downtown business owners have been calling on the city to take action for months to stop vandalism and destruction and help restore downtown.

Mayor Ted Wheeler has condemned the damage to businesses and said that promoting public safety has to be a key priority in reviving downtown Portland. The city has moved forward with initiatives to clean up downtown and plans to roll out another round of grants to help businesses repair damage.

But business owners say more needs to be done to prevent vandalism and destruction. The damage that has already occurred is having lasting impacts on businesses that have already been pushed to the brink this year because of the pandemic.

Todd Roll owns Pedal Bike Tours, which offers bike tours, rentals and repair. He said his downtown shop was broken into and looted following protests in both June and August. Roll said his insurer paid his first claim but denied the second claim due to the type of break-in that occurred, leaving him on the hook for about $10,000 in damages. He said burglars used a crowbar to break through the door when his store was looted in August.

In October, Roll was informed that his insurance carrier wouldn’t be renewing his policy when it expired. Finding a new policy with property coverage proved to be a challenge. He said his agent spoke to 30 different carriers and the best policy that was offered with property coverage came with a $35,000 premium. Roll finally opted for a policy that included liability protection, but no coverage for property.

“We’ve been in business for 12 years and we’ve never had a single reason to have a claim and then all of a sudden in one summer, it happens twice,” Roll said. “Now, I’m faced with having to put bars across the windows or shutters across the storefront at our cost. At this point, we’re boarded up and closed, but of course, we’ll reopen in the spring when hopefully the tourists come back, and then I’ll have to start worrying again, especially if rioting and looting are allowed to continue.”

Nicole Whitesell, the owner of Adorn, a boutique with four locations in the Portland area, has filed multiple insurance claims this year, including one after her downtown shop was broken into shortly after she reopened it in September. She has since kept her downtown store closed because she is worried about the impact that any additional claims will have on her ability to retain her insurance.

Murfitt said the change in his insurance coverage has forced him to take new steps to protect Mercantile from potential damage. He said the store still has boards on its windows and he is now keeping the door locked, even when the store is open, unlocking it only to let customers inside.

“It affects our psyche, just the feeling of not being secure financially, that we’re not covered,” Murfitt said. “You feel that vulnerability and then we’re paying four times the premium – you got to sell a lot of stuff to pay that premium.”