In this first part of 2 posts, Andrew Stuart Head of Political Risk at Safeonline, will be answering some of the more frequently asked questions relating to Terrorism and Political Violence insurance coverage.
“I have been providing Terrorism and Political Violence solutions for clients all over the globe since the late 1990’s. I don’t believe that there is such a thing as a ‘stupid question’ and below is a selection of the questions I have been asked over the years and the answers that I have given.
I am hoping that this insight will be useful to anyone interested in this line of coverage.”
What targets do Terrorists attack most?
Regrettably there is no easy answer to this question. In general, high media profile targets i.e. anything that will get lots of media attention. These targets are also likely to include high value property or so called soft targets like hotels, airports, banks or bus stations. Industrial locations are generally less welcoming to the public and usually have more physical security.
Whereas shopping malls may have good CCTV and physical security, they are also often of high value with easier access for a terrorist to slip in unnoticed due to the number of people milling about.
How is the Terrorism act defined or described?
We use a broad definition of Terrorism e.g. Terrorism is an unlawful act, including the use of force or violence, by person or group, acting alone or on behalf or in connection with any organisation(s). The act could be committed for, political, religious or ideological purposes, trying to influence government and/or putting the public in fear, for such purposes.
It is an intentionally wide definition, so that we can extend coverage for pressure groups such as animal rights and environmental campaigners.
Does the Government need to confirm or certify an event as an Act of Terrorism before we collect a claim?
No, unlike some state sponsored schemes, our commercial policies rely upon clear contractual definitions to trigger payment.
Is Terrorism the only “political peril” I can insure against?
No, we have a range of policies that can offer coverage for a variety of political perils such as Sabotage, Riots, Strikes, Civil Commotion, Malicious Damage, Vandalism, Insurrection, Revolution, Rebellion, Mutiny, Coup d’Etat, Civil War and even War.
Can you cover assets Worldwide?
Except for Sanctioned countries, yes. Worldwide coverage is available. In some countries, due to the local regulators, cover must be bound as a reinsurance of a local company.
What about theft or looting after a riot or named peril?
Yes, we have insurers who will provide theft or looting coverage following a named peril. Additionally, we can cover damage caused by local police or authority during their efforts to control or suppress an event.
What about non-physical damage such as lost profits or loss of rental income?
We can cover Business Interruption following physical damage under all of our Political Violence policies with indemnity periods of up to 30 months.
Visit our website for Part 2 of this blog at a later date.
If you need further information, please email Andrew Stuart: firstname.lastname@example.org