The British Insurance Brokers’ Association (BIBA) and Pool Re have launched a new comprehensive guide on terrorism insurance aimed at improving brokers’ understanding of the risk class and increasing take-up.
The new BIBA guide highlights why terrorism insurance is important to businesses and will enhance understanding of the risk of terrorism, helping brokers to work with their clients to make an informed decision about the protection they need.
The guide includes information about insurance providers such as Pool Re, which was launched in 1993, largely as a result of attacks by the IRA on the UK mainland, as well as the different types of terrorism insurance available to businesses.
There are also tips and advice on how a client can assess their vulnerability and build resilience into their business to complement appropriate insurance.
The guide describes how the Counter-Terrorism and Border Security Act has allowed Pool Re to expand its remit to provide cover for non-damage business interruption, closing a significant terrorism insurance gap for UK business, and giving confidence that businesses can continue to trade and provide services within their communities.
Graeme Trudgill, executive director at BIBA, said: “Now that legislation has enabled Pool Re to extend its remit and expand its cover options to include cyber terrorism there is more capacity for terrorism insurance. We need to increase awareness of the risks of terrorism to businesses and especially SMEs.”
“Businesses whose trading is affected by an incident can turn to insurance to help them get back on their feet. This guide will play an important part in helping insurance brokers to help companies understand the benefits of terrorism insurance and, in turn, increase the resilience of UK businesses, strengthening the economy.”
Julian Enoizi, chief executive of Pool Re, added: “Pool Re was delighted to be the key contributor and sponsor of the BIBA Terrorism Insurance Guide. We recognise the vital role insurance brokers play in ensuring commercial policyholders obtain the most appropriate insurance cover for their business. This guide highlights the argument that there are few businesses that can afford not to buy terrorism cover.”
Security and economic crime minister Ben Wallace said: “The threat of terrorism is ever present and evolving. The aim of Government’s counter-terrorism strategy, CONTEST, is to reduce the risk to the UK, its citizens and interests, so that our people can go freely about their lives with confidence.”
“This new guide on terrorism insurance will further our joint aims of improving resilience within UK businesses and its citizens. We know that UK insurance brokers, with their close relations to businesses are well placed to help improve the financial resilience of SMEs in the face of potential attacks.”