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Is this the next step terrorism insurance needed to take?

Is this the next step terrorism insurance needed to take? | Insurance Business UK

Is this the next step terrorism insurance needed to take?

Earlier this week, Pool Re announced the launch of Pool Re Solutions – a specialist unit aimed at offering a “centre of excellence” to share risk management knowledge built up over the last 25 years. However, the Government-backed insurer isn’t the only company offering something of a revolution in the marketplace.

Step forward Beech Underwriting, which, after telling Insurance Business last month that product changes were on the way has now formally launched its new product.

“We’ve completely reviewed what’s available in the market and we’ve now updated all our commercial cover,” said managing director and CEO Geoff Stilwell. “For example, we now automatically include loss of attraction, verified threat, brand rehabilitation, utilities, increased cost of working and seepage pollution and/or contamination clean-up. We automatically include standard limits but can increase them should anyone want that.

“What we’re trying to do is give the client better cover at no extra cost. We’ve incorporated some limits within the policy on the commercial side and hopefully that will keep everyone happy.”

According to Stilwell, the changes made to the renowned terrorism MGA’s offering are a direct response to consumer demand.

“The thing that worries most customers that we’re addressing here are verified threat and also the seepage and pollution aspect,” he said.

“The people most affected are going to be providers of restaurants, clubs, nightclubs, chain shops, high street – wherever you have a public gathering and something happens, there could be 10 or so restaurants in a line. Seepage pollution can cause a lot of problems.

“Parliament, for example, got locked down because somebody sent an envelope full of white powder – if that got blown into the air conditioning system, that could be pumped through a building and suddenly you have a major problem. Everything would have to be steam cleaned, etc.”

Verified threat, meanwhile, means an imminent physical threat to people or assets at the insured property that is communicated by the police, government, or by the insured to the police. If they have to evacuate the premises they have an inner limit there to cover their loss of takings. Stilwell believes the recent events in Manchester are a prime example of the need for this option.

Overall, he states Beech now offers a “defining product” with more coverage planned in the “not too distant future.”

“In my opinion, what we offer is heads and shoulders above what else is out there,” he said. “My message to brokers is simple - we’re here, we’re open, we have huge capacities available and we’re unrivalled in the market.”