This article was submitted by Towergate Insurance.
We live in a world where the risk of terrorism is ever present and with the UK Government now classifying the terrorism threat as ‘severe’, organisations across the country are exploring ways in which they can protect their companies against such threats, perhaps not realising that property insurance policies are not designed specifically with this exposure in mind, leaving businesses exposed to uncertainty and potentially catastrophic business interruption.
How can terrorism impact my business?
Previously, the risk of a terror attack is thought to have primarily been an issue for major cities. However, there is now every possibility that the risk has increased and become more geographically spread. Despite the recent devastation caused by groups or individuals, many companies remain exposed to major crisis and disruption to their business resulting from an act of terrorism.
There are many ways in which a major incident such as a terror attack can deter a business from its usual practices. The perceived threat is a combination of injury to the public, severe damage to workplace equipment and property, diminishing transport links and prolonged business interruption.
Even if not an intended target, your business may still be in the vicinity of an attack and therefore could suffer significant consequences.
Though such attacks are renowned for their surprise nature, businesses located in a high-risk area – near government buildings, major transport hubs, landmark buildings or in a financial district, should certainly be reviewing their insurance plans.
It makes good business sense for each business, or organisation, to take a close look at its own level of risk and to manage that risk, undertake a series of business reviews and consider a wide range of factors when putting insurance cover in place.
• Review your existing insurance policy to ensure there are no gaps in your existing insurance programme.
• Ensure that cover for attacks resulting from terrorism include attacks utilising Nuclear Chemical Biological and Radiological weapons.
• Ensure that current terrorism cover matches requirements in different territories.
• Determine if your supply chain(s) has adequate cover built in to its insurance programme and business continuity plans.
• Consider whether your business is overexposed to any suppliers and what effect this would have on revenue in the event of war, riot and civil commotion.
• Ensure that you are covered for financial costs against claims for damages by third parties or employees who are injured in a terrorist attack.
• Ensure that the cost of losing working hours following an act or threat of terrorism is covered.
• Ensure that your current policy includes political violence cover to provide a more seamless protection.
• Review Denial of Access (damage and non-damage) wording in your policy.
• Review Employee Safety and Security plans.
Whether you have insurance cover or not, it is prudent to review your Business Continuity Plan, (BCP), which should feature your emergency recovery planning. If you do not have a formalised plan it is important that you have clear actions in place to follow a serious incident.
For support with placing cover or making amendments to your existing plan; contact Rhys Woodward at [email protected]
Towergate is a trading name of Towergate Underwriting Group Limited
Registered in England No.4043759 . Authorised and regulated by the Financial Conduct Authority