The standalone policy, targeted at regional brokers, aims to provide a cost-effective solution to limited Pool Re cover
Specialty MGA Fiducia has partnered with Lloyd’s syndicates Ascot and Chaucer to offer standalone nuclear, biological, chemical and radiological (NBCR) cover for regional brokers’ commercial clientele.
The new policy, which has a significant aggregate limit, can be bought alongside Fiducia’s terrorism cover. It includes clean-up and decontamination costs as standard and can also be extended to provide denial of access cover if there has been a NBCR event within a five-mile radius.
The Leeds-based MGA believes NBCR terrorism attacks could be on the horizon as a result of the ongoing Covid-19 pandemic, following the publication of insights from Andrew Silke, a professor of terrorism risk management and resilience at Cranfield University.
Silke said: “One genuine concern is that Covid-19 may lead to a resurgence in interest among terrorists for using chemical, biological, radiological and nuclear weapons.
“Historically, a range of terrorist movements have been interested in bioterrorism, though there have been very few successful attacks by terrorists using biological weapons. While serious obstacles certainly remain, the huge impact of Covid-19 may re-ignite some interest in biological weapons.”
Fiducia added that its new NBCR cover also provides a more cost effective solution than Pool Re, a government-supported reinsurance scheme that covers terrorism risks – it said that Pool Re has “an all or nothing and as such it can make the cost prohibitive”.
David Heeney, terrorism underwriter at Fiducia, explained: “At Fiducia, we continue to offer regional brokers and their clients a flexible and affordable solution. Our cover, backed by Lloyd’s capacity, enables those with multiple premises to pick whether they want to cover all their locations or simply those they believe have a risk profile that merits coverage.
“It delivers a cost effective solution to the cover offered by Pool Re, which requires specific limits on each of a company’s premises which, as you can imagine, creates a significant liability which is then reflected in the premium.”
He continued: “The threat posed by NBCR attack is different: chemicals, radiation and viral infection can be carried significant distances from where it was detonated or released. With the threat levels increasing, it is an issue for the market and our clients.
“Regional brokers are keen to ensure their clients are offered the protections they need but terrorism has been one area where there has been a real need for an innovative approach.
“The Covid pandemic has impacted every business and insurance brokers are no different. We believe that our new policy will once again enable our broker partners to offer their clients a cover they may not realise they require at a price which is affordable for the peace of mind it will deliver.”