Ask the Expert: Why do we need terrorism insurance?

As standard, all insurance experts recommend terrorism insurance to their partners and clients. But why? What is terrorism insurance? What does terrorism insurance cover?

We put your most frequently asked questions to our terrorism insurance expert, Karl Linnecor, as part of NDML’s ongoing promise to keep nightlife businesses informed and protected. Karl explains why terrorism insurance is so important as well as what aspects nightlife businesses should look out for in their policies.

Should I have terrorism insurance, and how do I find out if I have it?

Karl: “Terrorism policies are normally a standalone policy, but some insurers can include this within the combined commercial insurance. The best thing to do is to speak with your broker.”

Brokers will recommend terrorism insurance as a policy because of its growing necessity. Various businesses, will have a differing likelihood of risk from terrorism, depending on an array of factors such as location, therefore it is best to contact your broker to access guidance. To contact NDML and be guaranteed to speak to an executive directly, call us on 0344 488 9205.

What does terror insurance cover?

Karl: “Your terrorism cover should include:

  • Physical damage insurance
  • Damage to property
  • Denial of access
  • Threat cover
  • Sabotage

and policyholders need to make sure each of these are mentioned within their agreement.”

This exhaustive list should be stipulated within your insurance agreement. NDML will always be completely transparent and open with their clients, making sure they understand the terms of their agreement and providing guidance on what’s covered and what’s not. Terrorism can be a complicated policy type, but with NDML, the experts are only a call away.

What types of business should consider terrorism insurance?

Karl: “I would say all types of businesses. It does depend on location, history and other factors, but all types of business need to consider taking out terrorism insurance.”

Since the 1970s, the risk of terrorism has always been present in the UK. Stop and searches have seen and increase and 11,154 examinations of suspected terrorism were conducted last year. Read the government’s report for a full account of the statistics. It’s a type of risk which is often non-discriminate of business type, therefore it is important all types of business consider taking out terror insurance.

How much does terrorism insurance cost?

Karl: “The cost of insurance is dependent on the size of the risk and location. As with all policies, the larger the risk, the more cost involved. However, the expense of losing out to a terrorist incident and its residual repercussions will greatly outweigh the price of insurance.”

Brokers are in the best position to weigh up a business’s risks and determine whether terror insurance is recommended.

What’s changed recently about terrorism insurance?

Karl: “Terrorists are now not just targeting property. It is an ever-evolving threat which means the insurance is also ever-evolving.”

Since the anti-terrorism bill in 2001, there have been a many changes to the law and within insurance policies, but what’s not changed is NDML’s dedication to its partners and clients. To always stay up to date, on the most recent developments, use a broker.

What to look out for in your insurance policy?

Karl: “There are key areas which need to be covered by your terrorism insurance. Not all policies will cover these, you should check through your agreement or with your insurer and check these areas are covered:

  • Does it include non-damage denial of access?
  • Does it include threat cover?
  • What is the radius in which denial of access will kick in?
  • Does it include sabotage cover?
  • Will it cover the loss of rent?
  • Is alternative accommodation compensation included?

Karl: “The most important points to take away is to make sure you are covered for terrorism insurance, and give NDML a call.”

NDML will provide you with guidance and also information on insurance for your hospitality and nightlife businesses. See our reopening handbook for full guidance on reopening in time for June 21st.

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