Terrorism Cover: A 'No Brainer?'

Posted 16/12/2015

Terrorism insurance cover is not a new thing. Not so long ago, it didn't even seem worth asking customers whether they wanted terrorism cover or not because, 9 times out of 10, they said no! However, recent events have somewhat put the spotlight on terrorism cover and it's importance, not just to physical property, but also to loss of income/profit. For what it's worth, the additional cost for this cover is usually quite minor (depending on the area).

Here is a fairly typical, if not, wider definition of 'Terrorism' under a stand alone insurance policy;

"An act of Terrorism means an act, including the use of force or violence, of any person or group(s) of persons, whether acting alone or on behalf of or in connection with any organisation(s), committed for political, religious or ideological purposes including the intention to influence any government and/or to put the public in fear for such purposes."

Now, this is where it gets fun! The definition of terrorism can vary from policy to policy. Here's a few things to look out for;

• Stand alone policies generally offer a wider definition as well as additional covers such as animal rights activists
• Cover for ‘ideological’ acts is unclear under Pool Re
• Some insurers offer terrorism cover for property damage and business interruption (or loss of rent) separately so make sure you take out both extensions (if that's what you want of course)
• Some insurers dictate that, if you have a portfolio of properties or a number of business locations, you can't take out terrorism cover for just one of the properties, you have to take it out for all of them. This is not always the case under stand alone policies
• Terrorism cover is mainly rated on sum insured and postcode so unfortunately there is no 'flat rate', therefore, the premiums may vary between each location

If you have a policy with us and would like to enquire about adding terrorism cover, please do give us a call on 01603 954054. If you don't have a current policy with us, we can also offer stand alone policies. We offer no obligation quotes so what have you got to lose!

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