Insuring against the risk of terrorism and political violence after the Coronavirus lockdown may not be seen as a priority for businesses at this time, but the socio-economic consequences are why it should be considered.

Experts have been predicting and preparing for the rise in terrorist activity that historically follows a period of unrest and economic hardship. The circumstances surrounding Covid-19 have created the potential for the growth of extremism. Recent violent scenes during demonstrations in London at the weekend seem to back this up.

The closure of schools and places of worship, rising unemployment and political disillusionment, mean more people are feeling isolated, spending more time online, often struggling with their mental health. Without community and support systems it is the ideal environment for extremist groups to exploit and groom vulnerable individuals.

Last month, Chief Superintendent Nik Adams, the national coordinator of Prevent, warned that referrals from the community were down 50% and there was evidence that jihadis were looking to take advantage of stretched police forces.

He said, “Isolation may exacerbate grievances that make people more vulnerable to radicalism, such as financial insecurity and alienation. The extremists and radicalisers know this and, as ever, will look to exploit any opportunity to lead those people into harm, often using topical issues as hooks to lure them in.”

Collaboration between Towergate and GEO Specialty offers alternative cover *

A collaboration between Towergate Insurance Brokers and Geo Specialty has made it easier to discuss Terrorism and Political

Violence insurance and provide quotes for any material damage (i.e. buildings, contents and stock), and business interruption.

The insurance has been developed to offer an alternative to Pool Re, the government backed scheme. Crucially it includes non-damage clauses as standard. This means that businesses
that are indirectly affected by an act of terror through business interruption or subsequent ‘loss of attraction’ can claim for loss of income. What is more, the cover is instant.

Another key difference between the Towergate/Geo cover and Pool Re’s is its broader definition of terrorism. Pool Re will only pay for claims that have been designated as a terror attack by the government and by a recognised terrorist group. As standard, the Geo cover includes attacks of political violence and of an ideological nature, whether an attack by an animal rights activist or a self radicalised or ‘lone-wolf’ individual, cover will respond.

*Cover subject to underwriting T&Cs/criteria.

The information contained in this bulletin is based on sources that we believe are reliable and should be understood as general risk management and insurance information only. It is not intended to be taken as advice with respect to any specific or individual situation and cannot be relied upon as such. If you wish to discuss your specific requirements, please do not hesitate to contact your usual Towergate Insurance Brokers adviser.

For more information or for a full review of your insurance needs, please contact your usual Towergate Insurance Brokers adviser or email TIB@towergate.co.uk.