A YORKSHIRE-based company has helped to create a terrorism insurance product for UK businesses.
The insurance will provide companies with cover in connection with business interruption following an attack. Leeds based insurance firm Fiducia has joined forces with Lloyd’s insurer, Atrium Underwriting, to produce a new terrorism product which will allow regional brokers to offer cover to their clients of all sizes.
Fiducia and Atrium have developed a terrorism and sabotage policy, which takes account of the changing risks associated with the latest types of terror threats.
A Fiducia spokesman said: “While the UK insurance sector’s specialist terrorism risk pool, Pool Re, offers cover it does so, in most cases, only if the insured’s building suffered physical damage.
“However, there is now a real demand for terrorism cover which is triggered if a business suffers business interruption, although there is no physical damage to the insured’s premises.
The spokesman added: “Many firms in the recent attacks on the Manchester Arena and Borough Market found they were unable to access their buildings due to the ongoing police operations for some days or weeks afterwards.
“Businesses in Borough Market have also said they have seen a significant fall in trade as visitors are concerned to go to the area following the attack.”
David Heeney, an underwriter at Fiducia, said: “Understanding the benefits of having a standalone terrorism policy is a difficult proposition for many clients, but we have developed, for UK regional brokers, a market leading terrorism product to help them in engaging with clients who feel their property and assets may not be vulnerable to an act of terrorism.
“Following previous terrorism events, 70 per cent of the companies that went out of business due to the after-effects, had suffered no physical damage or loss. “
“They simply were unable to access their buildings and the area, which had been popular with visitors, no longer held any attraction, so business was dramatically reduced.”
He added: “There has been a demand for terrorism cover that offers protection above and beyond that offered by the Pool Re scheme.
“While Lloyd’s underwriters have been providing cover with extensions for business interruption, denial of access and loss of attraction, regional brokers have not really had the ability to access it until now.”
Mr Heeney said that the policy includes access to Atrium’s risk management analysis software, which will enable brokers to provide detailed advice on the level and type of insurance needed by their clients on an individual basis.
“Blast Zone Exposure Management is a unique risk management analysis software,” he said. “We can analyse the insured’s assets and assist them in selecting a level of cover to match their accumulation of exposure, eliminating under and over insurance.”
Stuart Harmer, an underwriter for political violence at Atrium, said he was excited to be supporting the Fiducia team.
He added: “At Atrium, we choose our partners carefully and we are confident that Fiducia and the innovative products they have designed and created will provide a very attractive alternative to those currently in the market.”
“From the outset of our discussions we have been impressed by the drive, professionalism and depth of knowledge within Fiducia and we look forward to a long and successful partnership.”
Fiducia was established in November 2016 by the Leeds-based insurance specialist Gerry Sheehy.
Fiducia is a Managing General Agent (MGA) and underwrites various insurances on behalf of leading insurers, including Lloyd’s underwriters.