Attack Insurance is a product provided by Protect Underwriting LLP, underwriting on behalf of insurers at Lloyd’s of London.
Whether an attack occurs at or near your location, and whether the event is conducted by a terrorist, a criminal gang, a disturbed person or a violent employee, Attack Insurance can help protect your people, income and reputation.
Attack Insurance is a stand-alone and simple to purchase insurance policy which:
- Safeguards your people – allowing you to meet your duty of care obligations and demonstrate to key staff that you take their safety seriously.
- Protects your revenues – meeting business interruption and income losses for a range of scenarios.
- Builds your resilience – ensuring you stay ahead of your competitors if an attack occur
- Helps you recover – by providing immediate and direct access to world leading security and public relations consultants.
In May 2017 twenty-two people were killed and 59 injured when a suicide bomber detonated a homemade device laden with shrapnel in the lobby of the Manchester Arena at the end of a music concert. It was the deadliest terror attack on British soil since the 7/7 bombings in London in 2005.
In addition to the Manchester City Council claim for £26m to cover the costs of the emergency and response services, as well as the subsequent inquest and tourism support, the ‘We love Manchester’ fund received millions in donations that went to support bereaved families and those injured and traumatised by the attack, as well as supporting local businesses.
In spite of the funds, many businesses appeared to have suffered from reductions in footfall and turnover. A retailer quoted in a Federation of Small Businesses report on terrorism said that business stopped for a week and by the end of the month she had no cash to purchase stock. She also stated that she had no information or support from the police or local authorities in regards to resilience preparation or subsequent recovery; instead relying on local news and social media.
Loss of revenues for SMEs
Direct cost to SMEs
London Borough Market
In June 2017 three terrorists drove south across London Bridge, running into pedestrians as they walked along the pavements. After the van crashed at the end of the bridge, the men, wearing fake suicide vests, jumped out and proceeded to attack shoppers and diners with knives in the popular Borough Market area. Ultimately armed police shot all the attackers, but not before they had killed eight people and injured scores more.
The market was closed by police for 11 days as investigators and forensic officers searched for evidence and documented the crimes. The attack caused an estimated £1.4m of economic losses.
In the ensuing months many complained that the standard business insurance policies did not cover the event. And even the larger organisations that had purchased separate terrorism insurance, did not receive a pay out because at the time, business interruption was not included in the cover. Charitable contributions distributed two weeks after the attack allowed some of the most exposed traders to continue, but reliance on discretionary financial support can mean that owners, at a time when their businesses are most vulnerable, spend considerable effort to demonstrate they met the eligibility criteria for essential financial support.
Salisbury City Centre
In March 2018 three people, including a police officer, were poisoned with a Novichok chemical nerve agent in Salisbury. A pub, restaurant and small park were all isolated as investigation and decontamination efforts took place. Three months later, just as the city began to return to normal, a local couple also fell ill from the same poison. One died, whilst the other has enduring medical conditions. Further areas of the city, including a larger park, were cordoned off, searched and decontaminated.
Notwithstanding the significant international press interest and geo-political ramifications, businesses in Salisbury suffered on a number of levels. Footfall fell in the city by 16% after the March attack, climbed back to 4% down in early summer and then plummeted again to 12% down following the second poisoning. Shops around the city centre reported significant impacts on earnings, some down by 50%. The six retail units within the main cordon area were unable to trade for 84 days and the pub and restaurant remain cordoned- off seven months later.
Unlike the Manchester and London attacks, the uncertainties and fears of an enduring contamination risk add to the pressures on business, particularly those reliant on tourist visitors.
Reduction in revenues to some small businesses
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