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04 Jun, 2018|

Non – Damage Business Interruption Terrorism Insurance

It’s exactly a year since the terror attack at Borough Market in London. Headlines at the time understandably focused on the human tragedy when 8 people died and 48 were injured. What was less publicised was the number of businesses impacted by the attack.

As a headline this is not exactly a headline grabber or something that trips off the tongue easily but is something that many businesses need to be aware of. Businesses are unfortunately increasingly vulnerable to terrorist incidents. Police cordons and exclusion zones may mean access to a business is stopped in the short term or restricted in the medium term resulting in loss of customers and loss of attraction. The need for broader cover is now.

Pool Re currently exists – a Government backed solution specifically designed to cover terrorist acts designed to overthrow or influence the Government. This has some limitations:

  • Only available in England , Wales and Scotland
  • You must buy full value cover for all properties
  • No Business Interruption cover for property not damaged in an attack
  • No loss of attraction or event cancellation
  • Threat and hoax excluded
  • Terrorist attack MUST be by a Terrorist Group

The need for standalone insurance arises as the insurance industry and Government are having to grapple with defining an incident as a formal declaration of an act of terrorism. There are other motives for individuals ranging from political, religious, ideological or perhaps even sabotage that might result in a “lone- wolf” attack or a full blown terrorist attack.

The issue that needs addressing is if there is no physical damage to a businesses property or surrounding property and not having to also rely on the Government declaration of an act of terrorism.

Business Interruption covers need to be extended to include:

  • Denial of Access and Loss of Attraction triggered by acts of terrorism where there is no physical damage
  • Brand restoration expenses
  • Damage caused during containing an act of terrorism
  • Increased costs of construction as a result of building regulations
  • Specific Risk/location offer (not blanket) including overseas

Talk to us here at Anthony Jones for a full review of your business insurance – we’ll make sure you have the right cover in place.