Terrorism Non Damage Cover - update

25 Apr 2018

Terrorism in the UK is evolving – it’s specifically targeting loss of life, fear, and panic through violence in vehicle, gun and knife attacks in addition to the use of explosives.  

For businesses, this means that sadly injuries and fatalities could potentially happen on or near their premises. In addition to the human impact, access to their premises can be severely disrupted or denied for days, potentially up to a number of weeks depending on proximity to the violence. This equally applies where public safety concerns close large areas for gas leaks, road traffic accidents or other buildings are considered unsafe in the vicinity of our customer’s premises.

The government has committed to amend the Reinsurance (Acts of Terrorism) Act 1993, broadening its scope to include Non-Damage Business Interruption flowing from a terrorist action. As legislation is required to extend Pool Re’s remit, there will be a period of time before any changes come into effect via the Pool Re arrangements.  

How can Aviva help?

While we await the changes to Government’s legislation, Aviva can continue to provide the cover necessary for these instances. We can offer business interruption and make sure this is set at the right level needed by each customer. 

Where our customers choose Business Interruption cover, together with our “non-damage” extensions and terrorism they will have loss of income protection from a broad range of incidents affecting public safety including a terrorist event at or within a mile of our customer’s premises. 

Our Commercial Combined products allow these cover extensions and limits to be tailored to your Customers’ needs.

Our online traded package products already provide the following “non-damage” extensions automatically up to £50k, when Terrorism and Business Interruption is selected. 

  • action by any police, government or other competent authority, due to an emergency event
  • prevention of access
  • specified disease, food poisoning, vermin, pests and defective sanitation, murder or suicide
  • Loss of attraction (where a local attraction is damaged) 

Any questions?

If you have any questions, please speak to your usual commercial underwriter.