Terrorism insurance – are you covered?

Even with the terror threat level facing the UK raised from “substantial” to “severe” in response to conflicts in Iraq and Syria, the risk of being affected by a terrorist act remains low. As a business owner however, it’s still important to consider how well protected your business is should the worst happen as the impact of such an attack can be devastating.

Who should take out terrorism cover?

It’s impossible to predict when and where a terrorist attack may take place and on what sort of target. A full risk assessment can help to establish the risks you face and comprehensive terrorism insurance cover can go a long way towards helping to protect a business against the potentially huge losses that may result from an attack. Any property can be affected, either as a direct target or as a result of being in an affected area. Your employers’ liability insurance policy will provide you with a certain level of cover, but the main reason for adding a separate terrorism policy is to cover you against material damage.

What does a terrorism insurance policy cover?

A typical terrorism insurance policy will cover the physical loss or damage to property against the risk of a terrorist attack and insurance for the associated business interruption, as well as terrorism third party liability and employers’ liability.

Cover usually excludes nuclear, biological, chemical and radiological risks, although in certain cases, this can be provided, as can war, strikes, political violence, riots and civil commotion cover.


According to the Reinsurance Act 1993, terrorism can be defined as “…acts of persons acting on behalf of, or in connection with, any organisation which carries out activities directed towards the overthrowing or influencing, by force or violence, of Her Majesty’s government in the United Kingdom or any other government, de jure or de facto.”


How do I buy terrorism cover?

Terrorism cover can’t be bought in isolation because you must first take out insurance for the main perils of fire and explosion. Most insurers will allow the cover to be ‘bought back’ by payment of an additional premium on their existing policy such premiums are based on postcode area and a classification code and, as you might expect, inner cities such as London carry the highest premiums while rural areas are cheaper.

How can the brokers at Hine help?

Terrorism can take many forms and can include activities directed against businesses and corporations as well as directly against governments. The chartered insurance brokers at Hine can help carry out a full risk assessment of your business.

Our insurance brokers can help you to review your likely risks and how these can be most securely protected and insured. Whether you require terrorism cover included as part of a general business or property insurance policy or as a standalone facility we can tailor the insurance cover to meet your exact needs.

Don’t wait until it’s too late to consider full terrorism cover. Talk to the experienced professionals at Hine on 0161 438 0000 or visit our website at www.hine.co.uk

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