Stephen Haddrill, director general of the ABI, made the following statement in response to yesterday's events in London:
“The insurance industry will do the best possible job over the next few days and weeks following these shocking events. We are not yet in a position to estimate the scale of damage to property and the human loss. Many policies provide terrorism cover. Anyone affected should check their policy and contact their insurance company or broker.”
Property insurance
Business – Terrorism cover is available to businesses as an optional add–on to their commercial insurance policy. Property damage caused by explosion, as well as chemical, biological and nuclear contamination is covered in this way.
Business interruption insurance is also available as an option to cover consequential losses such as the cost of alternative premises, following any damage.
In some cases, ‘denial of access' cover may cover trading losses if firms are unable to open their businesses due to areas being officially cordoned off. Policyholders should check their policy cover. Many insurers offer practical advice to businesses, as well as advising on cover.
Household – Buildings and contents policies cover damage caused by explosion, fire or impact as a result of terrorism. Nuclear, chemical or biological attack is not normally covered.
Life insurance
Life insurance policies normally cover claims following explosions, including terrorist acts.
Health insurance
Policies covering critical illness and or income protection do not usually, but in some cases may, cover claims arising from terrorism.
Motor Insurance
Most comprehensive insurance will cover the cost of repair or replacement of a vehicle damaged as a result of terrorism. Third party fire and theft usually covers any fire damage.
Travel insurance
Travel insurance normally covers medical expenses and personal accident claims, even if the policy has a general terrorism exclusion clause.
Some policies cover missed departures as a result of transport difficulties.
