Terrorism insurance has become a must-have for business clients in high-risk environments but smaller business owners aren’t exempt from an attack – is it time you started recommending the coverage to all of your clients?
Julian Enoizi is the CEO of Pool Re – he says the insurance industry needs to increase the uptake of terrorism insurance as well as its scope.
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“In many of these events, small businesses have borne the brunt of the costs – from street closures to loss of attraction – damaging the wider economy as a result,” he told Insurance Business.
“These attacks have not been restricted to major cities or high-risk industries and locations. As high-profile sites become better defended, terrorists might turn their attention to less obvious and more exposed targets.
“Ensuring that businesses have access to terrorism insurance cover is key to mitigating this threat.”
Reggie Gibbs, managing underwriter of security risks at
Starr Companies, agrees – he says the need for terrorism insurance has become increasingly important in recent years as threats have shifted from high-profile locations to targets that would not typically be considered high-risk.
“Regardless of the location, profile or industry class of business, the chance of becoming a target of, or suffering collateral damage from, an act of terror has increased,” he says.
Geoff Stilwell, CEO and managing director of Beech Underwriting Agencies, also joins Gibbs and Enoizi as a vocal supporter of terrorism insurance.
“Unfortunately, any act of terrorism, as we know, is totally random. Therefore it doesn’t matter where a client is based or the type of business they are in – I would recommend terrorism insurance,” he told Insurance Business.
With over 30 years’ experience, Stilwell is a veteran of the insurance field – he says clients should be encouraged to ask themselves one question if they’re considering terrorism insurance: should an incident take place, who is going to pay back the mortgage or loans, or can I continue to trade?
“All the lender is interested in is getting their money back – whether you can trade or not trade – and having the right cover will enable a business to continue to trade,” he said.
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