Portland’s Roasting in a Dumpster Fire, Facemasks Covering Your Nose…

Paging Nelson

https://www.oregonlive.com/business/2020/12/insurers-balk-at-covering-portland-businesses-brokers-say-downtown-upheaval-has-made-carriers-wary.html

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.

“We’re effectively uninsured right now,” Murfitt said. “And we’re paying four times as much for the privilege.”

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.

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.

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.”

8 Comments on Portland’s Roasting in a Dumpster Fire, Facemasks Covering Your Nose…

Sippin' Coffee Saturday, 12 December 2020, 22:42 at 10:42 pm

Fitting.

6
JDHasty Saturday, 12 December 2020, 22:43 at 10:43 pm

Paging Nelson

https://www.oregonlive.com/business/2020/12/insurers-balk-at-covering-portland-businesses-brokers-say-downtown-upheaval-has-made-carriers-wary.html

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.

“We’re effectively uninsured right now,” Murfitt said. “And we’re paying four times as much for the privilege.”

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.

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.

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.”

4
ΜΟΛΩΝ ΛΑΒΕ Sunday, 13 December 2020, 0:05 at 12:05 am

It’s beginning to look a lot like Cuba
Everywhere you go;
Restaurants and bars are closing down
With small businesses about to drown
While unemployment lines just grow & grow & grow

It’s beginning to look a lot like Globalism
Bare shelves in every store
But the ugliest sight to see is the riot that will be
On your own front door.

A pair of shitkicker boots and a pistol that shoots
Is the wish of Barney and Ben;
Freedom to talk and expressing your thought
Is the hope of Janice and Jen;
And everyone knows that school are closed,
and will never start again.

it’s beginning to look a lot like Venezuela,
Everywhere you go
Reichmeister Governor’s taking away
more & more freedom every day
& Antifa will shake you down & make you pay & pay & pay

It’s beginning to look a lot like China
Everywhere you go
They’re smashing the Trump Hotel, the statues in the park as well,
We don’t want your kind that uses your mind, you must go.

It’s beginning to look a lot like Kristallnacht
Soon the bells will start
And the thing that will make them ring is the cattle cars that they bring
To cart you off to the Soylent Green Shopping Mart!

… needs work …. lots of work

14
Illustr8r Sunday, 13 December 2020, 1:57 at 1:57 am

Perfect.

6
MMinAR Sunday, 13 December 2020, 2:10 at 2:10 am

These urban shitholes are in a death spiral. The bike owner is looking forward to a springtime return of tourists? Why would anyone put Portland on their itinerary? Is he that dense?

The Portland 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. Shove that bullshit up your ass pal. This shit is 100% on you dipstick. Letting it go past the 1st night without bringing down the wraith of Thor on the scum’s rioting asses only encouraged more. You were out there with them scumbag.

And finally Eric Murfitt watched helplessly from a live security feed as looters robbed his store. When I had a store in downtown Denver, had there been rioting I guarantee that I sure as fuck wouldn’t have been watching it get trashed from a far. Bodies would have been stacked in front.

It’s like a cloud of stupid has descended over urban landscapes. People in Chicago have accepted dozens of shooting victims every week. Home invasions. Ungodly taxes. Rampant crime.

I thought Soylent Green was fiction.

5
geoff the aardvark Sunday, 13 December 2020, 7:45 at 7:45 am

It stunk in Portland when I lived there in 1971-72 but I also lived on a houseboat on the Multnomah Slough across from Sauvie Island in far Western Portland and and downwind from a pulp mill on Sauvie Island. Portland was weird even back then and far worse now and the pulp mill isn’t the only thing that stinks there now. I haven’t been back to Portland since the mid 80’s and wild horses couldn’t drag me kicking and screaming to go back there, not even to Powell’s bookstore which was once my favorite bookstore on the West coast.

3
stirrin the pot Sunday, 13 December 2020, 9:00 at 9:00 am

In the spirit of the covid Christmas season: Contact Tracers Are Coming To Town

https://www.youtube.com/watch?v=MR1CcibZyco

1
judgeroybean Sunday, 13 December 2020, 11:24 at 11:24 am

Hmmmm. Sumthin’s wrong with my give-a-shit-o-meter. Can’t get it to budge. Even tried new batteries.

1