In an ever-changing world, businesses and property owners face various risks, including the unfortunate threat of terrorism. Acts of terrorism can have devastating consequences, not only in terms of human life but also for the economy and businesses. To mitigate these risks, insurance providers offer a policy known as terrorism insurance.
Terrorism insurance is a policy designed to protect individuals, businesses and their assets including property from losses caused by acts of terrorism. These acts are aimed at causing widespread fear and panic. This insurance coverage can be purchased as a standalone policy or as an endorsement to existing property or business interruption insurance.
Why should I have Terrorism Insurance?
Comprehensive Protection: While preventive measures are in place to minimise the risk of terrorist attacks, property owners and businesses need to be proactive in protecting themselves. Standard property or block of flats insurance policies do not typically cover damages caused by terrorist acts. Without terrorism insurance, you would be left personally responsible for covering the costs of any damage, which can quickly amount to substantial financial burdens.
Unforeseen Proximity: It may be unlikely that your property, whether it’s a block of flats, business, or residential property, will be the primary target of a terrorist attack, but it’s possible to find yourself located in the vicinity of the target. This is where your home, property or business may become inaccessible due to security measures, law enforcement investigations, or surrounding infrastructure disruptions. Terror insurance would cover the costs of seeking alternative accommodations, such as a hotel, or cover your loss of rental income.
Contractual Obligations: Terrorism insurance is not generally compulsory, but it’s essential to review your contracts, leases, and mortgages as some agreements may require insurance policies to include specific elements of cover, such as protection against terrorism-related risks. Ensuring you are compliant with these requirements is crucial to avoid any potential contractual conflicts.
While terrorism insurance cannot prevent acts of terrorism from occurring, terror insurance offers peace of mind to property owners, knowing that they are adequately protected against unforeseen events. It allows them to focus on their core business operations, or personal matters, without the worry of potential terrorist threats and their financial implications.
Lansdown Insurance Brokers are experts in Terrorism Insurance, Blocks of Flats Insurance and Business Insurance. We can provide flexible policies to suit individual client needs and give advice on what cover is needed. For more information call the team on