Last year saw multiple vehicle-ramming terrorist attacks, including the London Bridge incident which not only cost lives in London but also impacted traders at the city’s Borough Market. With the shift from bombs and guns to vehicles as weapons, terrorism insurance is finding itself perhaps two steps behind – with some heeding the call for change, and XL Catlin being the latest to do so.
Recognising the risks being faced by fleet operators, XL Catlin has launched a contingent umbrella cover for the likes of haulage and logistics companies, as well as vehicle rental firms. Called “Auto Terror Protect,” the new product goes along with existing motor and third-party liability policies.
The offering covers injuries suffered by third parties and employees during a terrorist attack, as well as first-party property damage to the vehicle and goods in transit. Medical expenses, counselling and/or psychiatric care costs, as well as security and public relations costs are also covered.
“In recent years, we have seen a shift in the tactics used by terrorists, with vehicles being used increasingly to cause casualties,” noted Mark Steddon, senior underwriter for terrorism & political violence at XL Catlin. “The devastating effect of these attacks has led to increasingly complex liability exposures for companies with vehicles.
“As the risk increased and some insurers have restricted terrorism coverage where possible, many companies have been left exposed. Using our extensive knowledge and expertise in terrorism insurance and crisis management, we have created Auto Terror Protect to help these companies deal with the aftermath of such incidents, helping them meet their duty of care responsibilities.”
Auto Terror Protect’s capacity is up to US$25 million for any one risk.