August 24, 2017 by Canadian Underwriter
Allianz Global Corporate & Specialty (AGCS) is now providing bespoke coverage designed to protect U.S. businesses faced with loss related to terrorism and political violence both at home and overseas.
Given the recent tragic events in Europe and Virginia, the enhanced policy guidelines now mean coverage exists for incidents committed by a single attacker or group, acting alone or on behalf of an organization for political, religious or ideological reasons, notes a statement from AGCS, Allianz Group’s specialist corporate insurer.
AGCS offers customizable protection beyond that provided by the U.S. government’s Terrorism Risk Insurance Program Reauthorization Act.
Because the customizable protection includes a broader definition of what constitutes a terrorist incident, it is not necessary for the event to have U.S. government certification as an act of terrorism.
Christof Bentele, head of Global Crisis Management for AGCS, reports the expectation is that non-damage business interruption (NDBI) occurrences will increase.
The “alarming and changing nature” of events such as volatile protects and “lone-wolf” attacks “cause significant disruption to entities located in the vicinity of an incident,” Bentele says. “Our policy addresses clients’ need for solutions that protect their assets, income and reputation against these unpredictable situations and evolving threats.”
AGCS points out that businesses – even if not directly impacted – can still suffer significant losses following acts of terrorism or political violence.
Consider, for example, that following such events, civil and/or military authorities can shut down affected areas for significant periods of time and that access may be prohibited while investigations are under way. Both these situations can result in direct loss of revenue.
As such, AGCS offers “denial of access” extensions, which cover loss sustained when such access to and/or from property is prevented as a result of a lockdown.
Beyond the insured company, extensions for customers and suppliers are also offered “as the risk can extend to a client’s customer or supplier base, with indirect losses in the form of delays in delivery or receipt of goods from suppliers,” the statement notes.
Policies can be customized – as can limits, deductibles and sublimit amounts – to address standalone terrorism and sabotage, strikes, riots and/or civil commotion, full political violence (including war), terrorism liability, event cancellation (including threat) and nuclear, chemical, biological and radiological (NCBR).
“Following an act of terrorism or political violence at an insured location, unless a company is able to implement business continuity plans immediately, it can take months to get back to regular commercial activity,” says Adam Posner, senior underwriter for terrorism and political violence in North America for AGCS.
Beyond covering financial losses, the company also offers clients crisis management assistance services on a 24/7 basis, regardless of location, through its partner company red24.