Underwriting Article – Terrorism Cover by Tom Bolstridge


With the first quarter of 2023 in the rear-view mirror, and the trends from 2022 hitting the headlines, I wanted to share some brief comments on the topic of Terrorism Cover; primarily, the age-old question as to the need for it, particularly for Landlords.

Terrorism Insurance can help cover the costs of property damage, interruption of business, and liability claims following a terrorist attack. At Commercial Express, we offer Terrorism as an Optional Extra on a range of policies (Commercial Property Owners, Residential Property Owners, Fast Food & Restaurant, Office, Office MD Only, Public House, Shop & Wholesale).

With the UK Terrorism National Threat Level sitting between ‘Substantial and Severe’ for the best part of the last 5 years, I’m confident this cover has been considered by many of you; particularly as policyholders may not be clear on whether they are actually required to purchase Terrorism cover. Many landlords or property managers will have mortgage and lease agreements that, for example, require insurance to cover “All Risks” (which could include Terrorism)! Even those agreements that specify perils could leave landlords needing terrorism cover; for example, if an agreement states “explosion” must be covered, according to a legal case decided in 2014, then insurance against explosions as part of a terrorist attack must be included.

When deciding whether to purchase terrorism insurance, I think landlords may focus more on the practical or commercial factors at play. For example, they may feel their property is in an area where the risk is lower, or that their property is of no significance and is, therefore, less vulnerable; and in the current climate, with prices rising and landlords under pressure to manage costs, it can be a challenge for you as brokers to reassure clients that additional costs are worthwhile.

In the event of a claim, comprehensive optional extras on a policy can be the key to a good outcome for the consumer, however, landlords must also consider whether their decision could impact their contractual obligations to keep the property adequately insured.

I am keen to hear your thoughts on how we can support you in meeting the needs of your clients, with our Terrorism offering backed by A-rated insurers and available across several product lines, we are determined to offer the consistency and scope of cover you need.

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