The take-up of terrorism cover among SMEs could be set to surge following the latest terrorism threats in the UK.
The number of businesses, which currently take out terrorism cover as part of their commercial property insurance, is said to be low among SMEs compared to corporate-sized firms.
But, as counter-terrorist officials brace themselves for possible further bombing attempts, insurers have admitted that recent events, particularly in Glasgow, may raise awareness among companies based outside London.
Alan Gairns, property development manager at Royal & SunAlliance, told Insurance Times: “One of the things that has been said in the past is that [terrorism attacks] are seen very much as a London-centric type problem. The more you move away from London the less people believe they face the risk.
“What the events in Glasgow have perhaps highlighted is that it is not just a London issue. More people may now look again to see if they haven’t got cover whether it is something they need.”
Meanwhile, insurers have played down the effect the latest terrorism threats will have on terrorism rates in the UK insurance market.
A spokesman for Norwich Union, a member of the Pool Re scheme which covers the majority of terrorism cover in the UK, said:”Essentially there will be no impact [on rates] because there has been no damage.”
Rob Preston, war and terrorism underwriter at Novae Group, added: “Although this is terrible and shocking, it is not something out of the ordinary or taking anyone by surprise.
“Unless we see events like this happening every three months or on a regular basis people are not likely to change their thoughts on this as it is already built into terrorism prices.”
