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What you need to know about terrorism and protecting your business

Terrorism is a huge issue, yet many businesses are not prepared should they suffer a loss. Did you know that terrorism cover is generally excluded unless you have you have added it to your policy?

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What’s not covered?

Typically your insurance policy will pick up perils, or acts of god, like fire, storm and flood. The history of terrorism in the UK, dating back to the 90s means that terrorism is generally excluded.

This means that unless you have made provision your property will not be covered. Nor, in the event of a terrorist incident will any subsequent business interruption costs. All in all this could represent a sizeable risk to your business.

Pool Re, the government backed provider of terrorism reinsurance recently provided advice on how they could protect themselves in light of recent events in Paris and Brussels.

Highlights and the ways Square Mile can help are below with the full article available here. Their facts and figures show that:

  • 5 out of the top 10 most costly terrorist attacks have been in the UK
  • They have paid out more than £630m in claims
  • Almost 18,000 people killed in terrorist attacks in 2013 alone
  • Their exposure in the UK is £2 Trillion

The broader picture – including new threats

Risk awareness is key and businesses need to be know that cover is available and why they need it.

Dirty bombs

A range of tactics are being utilised and the Chemical, Biological, Radiological and Nuclear (CBRN) threat is real – including the possibility of a dirty bomb attack in UK. Daesh has declared its intent to carry out this type of attack in Europe.

Cyber terrorism

The main emerging threat is cyber terrorism the size and scope of which is still being assessed. If you want to find out more about cyber risks and how to protect yourself read more here.

3 ways we can help you

1) Integrating terrorism cover within your broader risk framework

2) Assess your exposure from third parties such as suppliers and utilities

3) Framing cover so that it can respond to catastrophic events – which is more likely to be experienced on terrorism than many other perils

If you would like to discuss terrorism call us today on 0330 024 2980 or click here and we’ll contact you.