The world has become a much more unstable and dangerous place since 9/11. It’s also become harder to predict when and where the next terrorism incident will happen. That means we’re all potentially at risk, not just those who travel to known ‘hot spots’ or dangerous locations.
Since 9/11 terrorism insurance cover has been subject to a number of stringent changes and provisos that can make finding affordable cover virtually impossible. Fortunately, Park Insurance can help.
Understanding Terrorism Insurance Cover
Since the World Trade Centre attack, many insurance providers have excluded Terrorism in home insurance cover. This potentially leaves people vulnerable to huge financial loss if their home is damaged during a terrorist incident. Regulatory bodies such as the Association of British Insurers (ABI) and the British Insurance Brokers Association (BIBA) have also been talking to the government and examining how terrorism insurance policies may have change to reflect the circumstances. In many cases, this has led to insurance providers dropping Terrorism cover entirely.
However, at Park Insurance we believe that innocent civilians should not be made to suffer financially because of a change in policy throughout the industry. So we work closely with providers who are willing to continue to provide cover for homeowners and businesses.
While Terrorism insurance is rarely included in primary policies, it is sometimes offered as an additional extra. Our job at Park Insurance is to find the best cover at the most affordable price, and advise you whether Terrorism insurance should be part of your package.
Pool Re – The industry’s response
In 1993 the insurance industry in conjunction with the UK government set up Pool Re (Pool Reinsurance). Pool Re is what is known as a mutual reinsurer made up of both insurance providers and Lloyd’s Syndicates. They offer commercial customers insurance that covers any losses that are a direct result of terrorist acts, no matter how big or small the claim. Just like any other type of insurance, customers pay an initial excess fee, but the remainder of the claim is covered by Pool Re, and underwritten by the Treasury.
At Park Insurance, we recognise just how worrying the thought of a terrorist act can be, especially for those living in ‘high-risk’ target areas such as the centre of major cities or near strategically important sites. So we work with you to not only reassure you, but to provide you with the right Terrorism insurance cover for your needs that is both proportional to the level of risk, and affordable for you, the customer.
To find out more about Terrorism cover, contact our friendly team today or email us using the contact form, and one of our expert advisers will get back to you.