Political Violence and Terrorism Insurance
17 November 2014
When is political violence and terrorism insurance advised?
In the light of recent political events in Burkina Faso and numerous countries in the Middle East, Bellwood Prestbury, working though Lloyd’s of London, has launched political violence and terrorism insurance.
Specifically designed for companies who might find themselves affected by sudden and violent political upheaval, our new cover extends to people, assets and business continuity.
27 years of stability threatened
The recent military coup in Burkina Faso shows how suddenly the political and security situation can change. Blaise Compaore had ruled for 27 years when four days of mass protests forced him from power, sparked by his attempts to amend the constitution so that he could remain as president.
Companies caught in the ensuing turmoil and uncertainty could be facing significant losses, in terms of trade or assets. In many cases their business insurance will not provide adequate cover given that provision for political unrest, war or terrorism may not have been included in their policies.
Peter Bellwood, Managing Director at Bellwood Prestbury explains: “When companies have been carrying out business in a country that has been stable for many years, they often only have standard insurance cover. Should people need to evacuate or claim for injury as a result of civil unrest, or the company loses valuable equipment or sustains damage to property, it’s likely that standard insurance will not be valid.”
Instability stemming from the Arab Spring
The Arab Spring demonstrates of how quickly the geopolitical landscape can change across a whole region. What began in late December 2010 as street protests in Tunis, had by February 2011 led to uprisings in nearly every Middle Eastern country. By the end of 2011, thousands of people had been killed, four long ruling dictators had been overthrown and the civil war in Syria had begun. Since then, despite initial hopes for peace and democracy, the political and security situation has, to varying degrees, remained dangerously uncertain across many Arab Spring countries.
At risk countries in Africa
A number of other stable African countries, have also been identified as being potentially at risk from political instability. Chad, Cameroon, the Democratic of Congo, Equatorial Guinea, Zimbabwe, Uganda, Angola and Rwanda – all have presidents who have changed, or who are attempting to change, their countries constitutions so that they can remain in power. Most of these heads of state have been in power for decades and there is a notable degree of popular unrest building against them.
Political violence and terrorism insurance
Bellwood Prestbury’s new political violence and terrorism insurance is designed to protect companies who are invested in these kinds of countries. Our political violence and terrorism insurance will protect property, assets, plant and machinery and provide cover for business interruption. The cover will remain valid in the face of civil unrest, riots, strikes, malicious damage and sabotage. You will also be covered in the event of seizure or nationalisation, as well as for acts of war or terrorism.
Call us to discuss your company’s specific needs. We can arrange political violence and terrorism insurance independently or as part of a package of other business insurances.
For information and confidential advice please contact us on +44 (0) 207 305 5650.