Why do businesses need Terrorism Insurance?

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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.

Karl explains why terrorism insurance is so important as well as what aspects businesses should look out for in their policies. Romero promise to keep all our businesses informed and guided on matters related to insurance including terror and risk management.

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 commercial insurance policy. The best thing to do is to speak with your broker.”

Terrorism insurance is not required by law, unlike most forms of commercial insurance, however many brokers will recommend terrorism insurance as a policy because of its growing necessity. Various businesses will have a comparable amount of risk from terrorism, therefore it is best to contact your broker to assess your degree of risk. To contact Romero Insurance Brokers and be guaranteed to speak to an executive directly, call us on 0113 281 8110.

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. Romero Insurance Brokers 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. With Romero, 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.”

Read the government’s report for a full account of the statistics. Terrorism is a threat 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 terrorism. 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 many changes to the law and policies, but what’s not changed is Romero insurance broker’s dedication to its partners and clients. For the best and most up-to-date information, use a broker. Find out why to use a broker, here.

Five reasons why you should use an independent 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 point to take away is to call us and we’ll make sure you are covered for terrorism insurance.”

Romero Insurance Brokers will provide you with the correct guidance for your businesses. Download our Terrorism Whitepaper to discover the risks you need to be aware of.

Download here

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