Terrorism and small business
The image that comes to mind when someone says “terrorism” is usually footage from 9/11. However, the nature of terrorism is changing. Read on to find out more.
However, recent trends suggest terrorism may be shifting from striking major targets to more frequent and smaller scale attacks. Attackers are also targeting crowded areas where people gather.
Also known as lone wolf attacks, these attacks are less predictable than big ones and can occur almost anywhere.
In these circumstances, businesses may want to consider terrorism liability that provides coverage for third party injuries and property damage arising from acts of terrorism.
This coverage has value in that attacks are becoming very unpredictable. Moreover, it’s a very poor game plan to hope that one’s business will be untouched.
Even if the business is not a direct target of the attack, it can still be affected by the aftermath. For instance, police investigations can close city streets for days and cause business interruption.
The business might experience delays with suppliers being unable to access the area. Sales may drop as people are scared away. In other words, the business can be impacted without directly suffering a loss.
Small businesses face an additional challenge in this environment. A larger business will have more resources to weather the storm than a small one. For example, they may have multiple locations to pick up the slack from the outlet in the affected area.
An individual business will likely only have one location and may be forced to shut down entirely, greatly impacting the owner’s finances.
To make matters worse, some commercial policies exclude acts of terrorism. Others may not exclude terrorism, but may not provide enough coverage.
We recommend that small business owners speak with their brokers about the kind of coverage they need. The right coverage provides peace of mind for business owners and their customers. Call us today to protect yourself.