Terror Cover? What Is It And Do I Need It?

22 June 2020

With the coronavirus pandemic creating seismic waves through the insurance market, terror insurance has understandably taken a backseat compared to other seemingly more relevant policies such as cyber and business continuity. However, with recent events in Reading bringing terrorism back to the front pages, it is important to consider this cover for your business.

The tragic attack in Reading highlights that such an attack can occur without warning and being covered for such an eventuality can save your business from considerable losses.

Terror cover is not traditionally included in standard insurance offerings, and therefore if this is something which you would like to explore further then we can help you to understand the options available in the marketplace.

This type of insurance can cover you for different elements, including goods in transit, supply chain issues, contingent business interruption extensions and loss of business.

Jonathan Moss, a partner and head of transportation for lawyer DWF, reflected on terror cover: “The business interruption angle is important, in particular for smaller firms.” For example, following the London Bridge terror attack, Borough Market was closed for ten days.

“It’s not an easy risk to underwrite, and in my area, transport, one of the big concerns is about crewless ships and what a terrorist attack could mean. It should also be a factor for when driverless cars are introduced. But the market has shown it can respond, such as in the case of virus outbreaks or with cyber insurance policies.”