Hiscox has created a new product to protect businesses against financial losses created by their premises being shut down by a security incident – the first product of its kind in the market.
The new Hiscox Threat product offers non-physical-damage business interruption resulting from a threat or a hoax – cover not previously available on a standalone basis. It protects businesses if their premises are evacuated, locked down or cordoned off as a result of a threat.
Interest from companies in such a policy has risen as a result of a wave of attacks that have resulted in widespread disruption in major city centres, says Charles Rawlins, War, Terrorism and Political Violence Line Underwriter for Hiscox London Market.
“The cover we’re offering relies simply on the threat of a malicious act or malicious damage, rather than on an incident being declared a terrorist event,” says Rawlins.
“Examples of cases where this policy would have been triggered include the truck found in Times Square in New York in 2010, the manhunt for the Boston bombers in 2013 and the siege in the Lindt cafe in Sydney in 2014.”
The policy offers cover of up to $5 million for any single event with an annual aggregate of $20 million.