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Exposure of Terrorism: What Threat Does it Pose to Your Business?

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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.

Key considerations

• 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

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At Towergate we take our time to understand your unique business and its specific requirements. We deal face-to-face with large corporations, organisations and SME’s with a local, regional, national and international footprint; businesses with complex needs requiring insurance programmes that are rarely a single product.

No matter what the size of your organisation, we will always adopt the same process to safeguard your business. We will sit down and discuss your company’s requirements with whoever we need to; the MD, the owner, the Finance Director; Health & Safety advisors; the company secretary, in-house Risk Manager or a combination of Senior Directors.

We truly believe in providing the personal touch, providing both local and national service. That’s why we have over 80 locations across the UK. Our proposition to you is underpinned by strong relationships with leading insurance partners, who in turn appreciate that we place our clients, at the centre of everything we do.

Having formed a historical presence in Wales, our Welsh offices continue to trade in Cardiff, Swansea, Barry, Bridgend, Tonypandy, Bargoed, Haverfordwest and Ammanford and form part of the Towergate Group. Formerly trading as Antur Insurance Services, CCV Cardiff, Morgan Brokers, Motaquote and Underwood Insurance Brokers our teams have a local knowledge and understanding of Welsh business practises.

As part of the Towergate Group, these business are backed by the one of the largest corporate and SME insurance brokers in the UK, which not only allows access to the general insurance market and Lloyds, but also to a number of bespoke and unique options, which can provide specific benefits for our clients.

 

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