In a clear sign that the times are moving in a worrying direction there has been a significant surge in public sector spending on terrorism insurance.
Data company Tussell, which examines public contracts, has revealed there were around £56 million in contract awards for insurance services including terrorism cover during 2017 – that represents a rise from just £14 million one year earlier.
A report in The Telegraph highlighted one recent contract award for Fidelis Underwriting. It has been asked to insure Southwark Council’s headquarters in London, at 160 Tooley Street – this is in close proximity to the London Bridge terror attack which took place last June. The contract is reportedly worth £34,000 and would see the insurer pay out should another attack occur.
Typically, terrorism cover has focused on property damage. However, several firms within the insurance industry have made moves to change this and broaden the coverage which was previously based around the threat of the IRA back in the 1990s.
Back in June last year, Geoff Stilwell, managing director of specialist firm
Beech Underwriting, told
Insurance Business that brokers need to “
cut the gobbledygook” and speak to clients in plain English about the cover available.
“A lot of people don’t want it,” Stillwell told
Insurance Business. “They don’t see it as a necessity. It’s not necessarily required on everything but certainly where you have restaurants, pubs, entertainment and hotels - they should really be looking at having terrorism coverage with non-damage denial of access.”
Most recent attacks have been less about physical assets and have rather been about significant business disruption.
Related stories:
Brokers – time to cut the “gobbledygook”
Have you considered this element of terrorism coverage?
