More needs to be done to alert clients – and even some brokers – to the fact that there are alternatives for terrorism cover outside of Pool Re, says the managing director of specialist firm
Beech Underwriting Agencies.
Following a number of terrorism incidents in the UK this year, particularly the London Bridge attack in June, much has been made in the mainstream media over a lack of access to business interruption (BI) cover as a result of terrorism – in particular an extension to include non-damage denial of access.
Government-backed Pool Re can only provide cover for losses incurred as a result of physical loss or damage to the insured’s property – but there are other options in the market that include BI, stressed Geoff Stilwell.
“The fact remains that non-damage denial of access is available and has always been available outside of the Pool Re market,” the MD told Insurance Business.
“Beech Underwriting has always offered non-damage denial of access. Always. But until now, very few people ever took it up,” he explained.
Following the London Bridge attack, which saw a number of business owners in the Borough Market area unable to access their premises for days due to a police cordon, Beech has seen an uptick in enquiries for cover that extends to include the coverage.
“There has probably been around a 30% increase since the attack,” Stilwell said, adding that prior to the attacks this year, many businesses did not think that they needed a non-damage denial of access extension to their business interruption cover as part of their terrorism insurance.
However, many brokers are still not aware of the alternatives to Pool Re available in the market, and are therefore not properly advising clients, according to Stilwell.
“A number of people out there either only believe in the Pool Re facility as being their primary route for terrorism insurance, or don’t know about us or others that provide this cover,” the managing director said.
“Brokers often will only quote Pool Re, which in my view is not giving the client best advice. What brokers should be doing is sourcing people like Beech Underwriting to provide them with a true alternative, and then giving the client the pros and the cons.”
Now that some hard lessons have been learned as to Pool Re’s inability to pay out for non-damage denial of access claims, educating both the client and brokers is key, Stilwell said.
“It all goes back to education,” he commented. “A lot of brokers still don’t know that we’re here. They don’t think there’s an alternative available.”
Those that do, need to ensure that clients too are aware of the covers available in the market, which do include business interruption for non-damage denial of access – and at prices starting from just £50.
“I’ve been doing this for 20 years, and Beech Underwriting has been doing this for 16 years now. We are the market leader in this,” Stillwell added. “If you come to us, we can offer flexibility, choice, and alternatives and add-ons that Pool Re can’t.”
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