2017 took the world by surprise with its unprecedented number of devastating terror related attacks. Whilst we are all aware of the ever-increasing threat of terrorism, few would have predicted the extent of damage and destruction we saw last year.
At the beginning of 2018, the terror level is still at severe, meaning that an attack is highly likely.
Hospitality businesses, especially those located in busy city centres, are increasingly likely to suffer a loss following a terrorist attack, not from damage to their property, but from an inability to access their premises or from a downturn in trade in the immediate aftermath.
Many business found that their insurance programmes were woefully inadequate and were unable to recover any of their losses following the attacks.
Why were businesses unable to claim on their insurance?
There were two main problems:
1. Most businesses had not taken out separate Terrorism insurance as an addition to their main business policy and therefore had no cover.
2. Those who had Terrorism cover, even from the Government backed PoolRe facility, only had cover for actual physical damage to their property and not the necessary extensions which provided loss of profit cover as a result of them being unable to access their business due to the Police cordon.
|Case Study: An example of how Finch helped a client affected by the Borough Market attack
Following the Borough Market attacks, one of our restaurant clients was unable to open for 11 days because they were located in the cordoned off police investigation area.
We had arranged full cover, with terrorism extensions, for our client and they were fully covered for damage and loss of profit from not being able to open. Their claim for approx. £90k was paid in full.
How Finch can help
We look after many hospitality businesses. If you’re concerned that your business could be affected in the event of a terrorist attack, and would like us to carry out a free of charge audit on your existing insurance arrangements and Terrorism risk assessments, please call our Hospitality insurance specialists:
John O Hara: email firstname.lastname@example.org or call 07740 819421
Rebecca Webster: email email@example.com or call 07740 819438