“September 11th has brought to light a new dimension of international terrorism with a previously inconceivable scale of threat and loss potentials”

Swiss Re

Terrorism can now be considered a consistent threat to business. Whilst terrorist activity is not a new phenomenon, for both businesses and insurers, past events no longer provide a guide to the potential scale of future events.

Insurers can no longer provide automatic cover for business assets or loss of profits as part of their standard policy cover, although limited cover remains available in some areas of insurance.

Terrorism cover is automatically written out of all commercial property and loss of profits insurance policies. You may consider the risk too remote for your business, but you do need to assess the risk and whether you need to bring the cover back into your property and loss of profits arrangements.

Key considerations

  • Business location
  • Proximity to potential terroristĀ targets
  • Business continuity planning