FIRE INSURANCE DURING THE WAR 59 
break of war those few took the earliest available opportunity 
(usually the next ensuing renewal date) of withdrawing the 
concession. 
After the outbreak of war, events which are subjects of 
common knowledge caused the insured public to modify its 
attitude in regard to the restrictions in the common form of 
Fire insurance policy. The popular demonstrations which 
followed the sinking of the Lusitania and general indications of 
labour unrest caused apprehension to owners of property and 
suggested protection by insurance against damage to property 
arising from such disturbances. 
To those who have had no practical experience of the 
working of the Riot (Damages) Act 1886 (an Act which 
imposes upon Local Authorities responsibility for damage to 
property in Great Britain caused by persons riotously and 
tumultuously assembled together) insurance would seem to be 
unnecessary in respect of damage to which that Act applies, 
but it may nevertheless be desirable. Local Authorities must 
necessarily be on the defensive; they cannot be compared 
with underwriters, for they have nothing to gain by prompt 
and generous settlements of claims made against them. The 
recovery of compensation under the Riot (Damages) Act 
usually involves long and difficult negotiations, perhaps even 
a lawsuit, and in any event public bodies are bound to assess 
the amount of compensation on the lowest possible scale. 
On the other hand those who transact insurance as their 
business desire the goodwill of the public which is best secured 
by a liberal interpretation of their contractual obligations and 
a prompt assessment and discharge of the liability. 
The need of prompt payment may in certain circumstances 
be vital to the trader, and especially so in time of war. The 
business community and owners of private property, being 
well aware of the attitude of public authorities on the one hand 
and of the methods of insurers on the other, were quick to see 
the advantage to be derived from the supplementary protection 
afforded by an insurance policy. Moreover, the protection 
afforded by the Riot (Damages) Act is limited in its scope as 
Riot, civil 
commotion 
and military 
or usurped 
power (Great 
Britain).