Hospitality Providers Take Risks With Modern-Day Terrorism
The first anniversary of the terrorist attacks in Borough Market, London was marked in June 2018, with many of the trendy and well-patronised food and drink businesses in this part of the city now having been left with indelible memories and a share of an economic loss tally that totalled £1.4m.
But London businesses are not the only ones to have suffered. The Mill Pub in Salisbury was only handed back to operator, Greene King, in August, some five months after the March 2018 Novichok attack.
Meanwhile, the clean-up at Zizzi, where the Skripals dined in Salisbury on the day of the attack, is still not complete.
These incidents stand as a warning to hospitality providers, who should recognise that the random nature of modern-day terrorism means that it is a phenomenon no longer confined to just ‘big city’ targets. Anyone enjoying a Western lifestyle is at risk, no matter whether they are browsing a Christmas market, shopping, or relaxing in a restaurant or bar.
However, it is a fact that the majority of UK businesses have no insurance protection that could step in if an act of terrorism affected their business, with the percentage of SMEs that have had the foresight to buy such insurance cover amounting to just 3%, according to Insurance broker body, BIBA. Many of those unprotected probably do not realise that ordinary commercial insurance policies do not pick up the tab for any damage caused to a business by an act of terrorism.
To encourage more businesses to buy terrorism cover, the Government is changing how this type of insurance will work, following an incident. Traditionally, this type of policy has only awarded compensatory payments to businesses directly damaged by an act of terrorism. Now, the cover will compensate more of those affected. An example will be those businesses unable to trade because of a police cordon that prevents them from reaching their premises.
Nowadays, all hospitality providers should consider buying terrorism protection, particularly if they operate in a busy or iconic location. To find out more about how to add this to your existing insurance cover, please get in touch.