Specialist insurer, Hiscox, has unveiled a broker system, which provides up to £16m of instant terrorism cover for US clients.

Despite hopes that the system would plug the gap left by September 11, some analysts were disappointed by the lack of cover for metropolitan areas. Hiscox defended extra restrictions on cover for chemical, biological, nuclear and cyber attacks by claiming they "keep the cost of premiums down".

The 'Terrorism Insurance Extranet' will provide online policies within ten minutes, which Hiscox predicts will address the growing risk faced by businesses.

Hiscox underwriting director Rob Childs said: "Changes in the US terrorism market post September 11 have resulted in a noticeable and worrying gap in cover for middle market US business."

The extranet underwriting facility will enable brokers to deliver instant quotes and policies. Hiscox expects the solution to cut brokers' costs.

Childs added: "Our new extranet service gives brokers instant access to capacity for Terrorism insurance and allows them to offer their clients a clear and straightforward policy wording."

The service has now gone live following a successful trial with several London brokers.

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