Strikes, Riots and Civil Commotion (SRCC) Clause
The SRCC clause covers physical damage caused directly by strikers, locked-out workers, rioters or civil commotion, and is increasingly being carved out of all-risks property policies and offered separately or as a buy-back.
- Clause type
- Extension
- Origin/Market
- London Market (LMA/NMA/Lloyd’s)
- Favours
- Insured
- Negotiability
- Negotiable
Purpose
All-risks property policies have traditionally treated damage caused by strikes, lock-outs, riots and civil commotion as an implied, silently-covered peril without defining it separately. The SRCC clause (“Strikes, Riots and Civil Commotion”) makes this cover explicit while also distinguishing it from terrorism and war risks, which are typically excluded separately.
Effect and limits
Cover responds to physical damage caused directly by strikers or locked-out workers in furtherance of a strike, by rioters, or by a crowd during civil commotion – but not to pure business interruption without physical damage, loss of revenue from denial of access away from the insured premises, or events that cross the threshold into civil war, insurrection or organised, politically motivated violence. As social unrest increases globally, many insurers are moving to remove SRCC risk from the base cover, sub-limit it, or offer it only as a paid buy-back; alternatively the risk is placed under a standalone political violence policy.
Negotiation and practice
At placement, it is important to establish whether SRCC is included in the base cover, sub-limited or excluded altogether, and whether a separate political violence policy with its own definitions, aggregate limits and waiting periods is needed. The line between SRCC and terrorism can be difficult to draw in practice and can determine whether a claim is covered or declined, making close review of the specific clause wording essential.