Terrorist incident highlights value of comparing cover

The recent terrorist incident at Borough market has highlighted the potential pitfalls of arranging insurance cover without receiving advice, or placing too much emphasis on comparing policies based on price rather than cover.

All businesses, particularly small businesses, are under financial pressure, however the risk of having insufficient cover in place can result in major losses further down the line.

One of the businesses affected in the Borough Market attack, Arabica Bar & Kitchen, reportedly had business interruption coverage, but after the tragic events, found that there was an exclusion regarding closures due to terrorism, as owner James Walters had the misfortune of finding.

A report by BigHospitality said “Borough Market’s Arabica Bar & Kitchen has been hit with a £50,000 bill after its insurance company refused to pay out for business interruption following the June 03 terrorist attack and the subsequent closure of the restaurant.”

The right insurance cannot compensate for the loss of life, or the trauma experienced, but it can help a community re-build itself as businesses survive and re-open.

We strongly encourage businesses to seek professional advice from a broker when looking to insure their businesses against a wide range of risks, even if these risks seem remote and unlikely to occur. As brokers we are able to not only identify potential areas where your business is at risk, but utilise our relationships with insurers to arrange the cover at value for money. Should the worst happen, we are there to help you in the event of a claim, where our leverage with insurers can be harnessed.

Categories: Small Business,