Between 22nd March and 22nd May, there were three terrorist attacks in the United Kingdom, which left 217 injured and 35 dead. These tragic events illustrate how terrorist attacks have changed in recent years. Modern tactics no longer involve coordinated attacks with bombs and sophisticated weapons to cause severe damage. Instead, tactics are more low-tech—often involving heavy vehicles and knives—and focus on injuring or killing as many people as possible. Just as the terrorists’ tactics have evolved and changed, so too must insurers’ terrorism cover.

Yet, unlike other types of cover, terrorism insurance has remained relatively unchanged. Generally, it only provides an organisation with compensation if its property is damaged in an attack. However, the damage caused by modern terrorism attacks often creates business interruptions rather than property damage. That is why it is important that insurers broaden the scope of terrorism insurance beyond just property damage. However, some terrorism policies may include business interruption as an extension for an additional premium.

In the interim, take the following steps to ensure that your business will not be disrupted by a terrorist attack.

1. Review your business continuity plan. If a terrorist attack were to disrupt your day to-day operations, you need to have a business continuity plan, which outlines how you can continue some—if not all— of your standard business operations.
2. Develop an emergency response plan. If a terrorist attack were to happen near your organisation, you need to have a clear plan on how to handle the situation. This should include what actions you and your employees should take.
3. Discuss and re-evaluate your business insurance needs with Lockyers to close any potential gaps in your cover that a terrorist attack could expose.