NMU Adds Non-Damage BI Cover to Terrorism Wording04/12/2017
The terrorism threat level in the UK remains at Severe, following an unprecedented rise in terrorism attacks in recent times.
The nature of events, as evidenced at London Bridge and Borough Market with the use of handheld weapons and motor vehicles, has shown that the modern day terrorists are more likely to direct their actions towards causing human casualties, rather than causing property damage.
As terrorists move away from causing property damage, businesses are increasingly exposed to uninsured BI losses because terrorism policies typically require physical damage as a trigger for BI cover. And many businesses are discovering to their cost that most insurers don’t cover such losses unless there is at least some physical damage.
Those in the retail, hospitality and entertainment sectors are particularly vulnerable to BI losses caused by the denial of access and subsequent loss of attraction that can follow events aimed solely at inflicting casualties, often in and around entertainment venues and tourist attractions. So, as well as damage to own and third-party property, our new wording also responds to the use of vehicles, hand-held weapons and explosives devices aimed at causing death and injury.
Commenting on the product enhancements, NMU Executive Director, Duncan McClean said, “The evolving nature of terrorism incidents brings a whole new set of risks and exposures not previously considered or catered for, particularly in relation to BI losses. Recognising this, our new terrorism product has been updated to specifically include the critical protection that policyholders need.”