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Terrorism and business interruption

I read with interest that Public sector organisations have quadrupled the amount of money spent on insuring against terror attacks in the past year and compare this with my own findings when reviewing cover with local SME’s.
Historically it is not something that has been high on the list of insurance priorities amongst provincially based SME’s; quite rightly the prospect of them being targeted by some sort of terrorist organisation is a pretty remote one.
However there is a wider picture to consider, more than just a direct terrorist attack on property and given that the risk is still pretty limited it does not need to cost the earth to include terrorism onto your insurance schedule.
It is not inconceivable that something like the M25 motorway or railway services to & from London could be targeted, both of which would impact on movement and commerce locally.
Consider what impact to your business a terrorist attack would have on transport links in the surrounding area and then think about interruption to your business; your staff, your customers and supply chain.
Terrorism cover should not just be limited to property damage to an organisation but anything that impacts on your business as a consequence, something that could affect each and every one of us local businesses.
There have been moves from within the insurance industry to try to broaden coverage, in the wake of attacks in recent years. Current rules were established during the Nineties, when the major threat was from the IRA.
More recent attacks have been less damaging to physical assets but have resulted in major business disruption.
Most lenders will insist upon terrorism cover to protect their interest in your business assets, this is for your more traditional property damage type risks and I also suspect that they may start insisting on cyber & data liability insurance as terrorism threats change along with the digital age.

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