This is the part two of our Political Violence Insurance Q & A with Andrew Stuart, Head of Political Risk at Safeonline.
“I have been providing terrorism and political violence solutions for clients globally since the late 1990’s. I don’t believe there is such a thing as a ‘stupid question’ and below are a furthers selection of questions I have been asked and my answers. I hope that this insight will be useful to anyone interested in this line of coverage.”
Can you cover construction projects?
Yes, we can cover building projects from the start of construction, right through to the operational phase. Project lengths of up to 3 years without any break clause can be covered to provide budget certainty. We can also offer delay in start-up (DSU) coverage following a named peril (a business interruption cover that is unique to construction.)
Can we insure mobile equipment or stocks?
Yes, whilst most goods in transit would usually be covered for terrorism by a cargo policy: once static, it may require additional terrorism cover. Mobile assets, such as trucks, tankers, news or very high value vehicles can all be insured. All that we require is a full schedule of values.
My client has many customers on his premises. If an event occurred, could he be held legally liable if they were killed or injured?
In some cases, yes clients can be held liable. We always advise clients who operate venues where large numbers of people might gather such as stadia, theatres, cinema complexes or shopping malls, to look at their public liability cover. In many cases, terrorism is excluded and at best they may contain an inadequate sub-limit. It is therefore imperative that any buildings open to the public are protected by a terrorism policy, and that employees and owners are protected by a terrorism liability policy.
Please can you provide an example of when a terrorism liability claim might be made?
Terrorism liability is purchased to cover employees and operators in the case of a terrorist attack.
At a high school football game in the US, a radicalised student was deterred by security guards checking bags for alcohol, from setting off a homemade bomb on site. Rather than facing arrest, the student detonated the bomb in the car park, where two cars were destroyed.
Had the student gained access to the stadium, the stadium operators would have been held liable. If their current policy had excluded terrorism, as many of them do, insurance would not have covered any part of the claim.
What about a Cyber Terrorism attack?
Yes, we can offer cover for damage to your property if the attack emanates from a digital or cyber-attack. Our cyber team will also be able to offer more comprehensive cyber solutions if required.
Can my clients protect against the growing trend of ‘lone gunman’ attacks?
Yes, there are several new products available in which terrorism definitions have been stretched even further and in some cases do not even require political motivation as a trigger. These are in attempt to offer coverage for these ‘lone wolf’ style attacks.
Does my client need Terrorism cover? There are no bombs going off locally?
Yes, if you are a public company, you have a duty to your shareholders. Even modestly sized private companies should be demonstrating strong corporate governance and protecting their bottom line. Just because there is no immediate threat, does not mean that a threat does not exist. Terrorist can and do strike anywhere.
My client has had a previous terrorism claim, can he still get terrorism insurance?
Yes, our specialists insurers would require details of the claim and evidence that action has been taken to prevent further attack. However, a previously poor loss experience would not prevent us from offering coverage.
If you are interested in political violence insurance, or need further information, please contact Andrew Stuart: Andrew.firstname.lastname@example.org