According to research from Pool Re, 43% of businesses surveyed after the Manchester Arena bombing in 2017 did not have any continuity, disaster recovery or crisis plan in place.
To help address this gap, the Society of Insurance Broking has produced a guide with considerations for insurers and brokers when arranging and dealing with extensions to terrorism cover.
The good practice guide states that business owners need to be made aware of the many different ways in which an act of terrorism could affect them. It also shows show cover against terrorism should be appropriately tailored to their underlying risk. Clients also need to be made to clearly understand the policy wording and extensions when recommending some form of terrorism cover.
The guide also highlights how brokers should ensure clients understand that an act of terrorism doesn’t affect just the intended target but can cause collateral damage to the surrounding area.
It is not just large businesses in urban areas that are advised to have some protection against terrorism. Smaller businesses and operations outside urban conurbations are all recommended to have a form of cover.
Chair of the Society of Insurance Broking, Kevin Hancock said: “In my experience, many clients feel that this ‘will never happen to me’ and we need to help them to understand that this is a significant risk to their business that can be easily transferred to an insurer.
“As well as direct losses, businesses can be affected by a nearby event or attack causing significant disruption and/or potential denial of access.”
The full guide can be found here: https://www.sib.org.uk/learning/learning-content-hub/articles/covering-terrorism/91076
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