London Terror Attacks: Insurance companies don’t cover losses to small businesses

Summary

The video highlights the resilience of London’s Borough Market after a terrorist attack that led to severe business disruptions. Vendors, like Sean Cannon, faced significant financial losses as insurance companies refused coverage for terrorism-related damages. The script explains the growing issue of insufficient terrorism insurance for small businesses, with many lacking protection for revenue losses when property damage isn’t involved. The report touches on efforts by market vendors and government discussions to close this coverage gap and ensure future protection for small businesses against the evolving nature of terror threats.

Takeaways

• 🍽️ London's Borough Market remains a bustling foodie hub, still attracting thousands of visitors despite a recent terror attack.
• 😨 The terror attack involved three men who stabbed people after ramming a vehicle into pedestrians on London Bridge, causing widespread panic.
• 🔒 Businesses at Borough Market were shut down for 10 days due to the attack and the subsequent crime scene investigation.
• 💸 Many small businesses, like Sean Cannon's charcuterie, suffered significant financial losses, including perishable stock worth tens of thousands of pounds.
• 🛑 Many vendors were not covered for losses caused by terrorism, as insurance policies often exclude terrorism-related claims.
• 📉 The shift in terrorism tactics, from large-scale attacks to urban carnage in crowded places, has left businesses vulnerable to economic loss.
• 💼 Insurers now face a 'coverage gap,' where businesses that suffer losses due to terrorism, but without property damage, are not protected.
• 🏢 Pool Reinsurance, a British government-backed agency, is discussing with the government ways to close this gap and provide better protection for small businesses.
• 💡 Sean Cannon eventually persuaded his insurer to review his claim, but he believes more accessible and affordable terrorism insurance is needed.
• 💪 The market's reopening was a symbolic victory, with traders determined to reclaim their space and continue trading despite the ongoing threat of terrorism.

Q & A

What event caused the disruption at London's Borough Market?

A terrorist attack occurred at London's Borough Market, where three men carried out a stabbing spree after ramming a vehicle into people on London Bridge.

How did the terrorist attack impact businesses in Borough Market?

Businesses were forced to shut down for 10 days due to the investigation and cordoning off of the area. Many vendors suffered financial losses as they could not access their premises or sell their products.

What challenges did Sean Cannon, a charcuterie business owner, face after the attack?

Sean Cannon was unable to access his business for 10 days, losing about £20,000 worth of stock. His business, which serves both retail and wholesale clients, was severely impacted by the forced closure.

Why were many businesses unable to claim insurance for their losses following the attack?

Many businesses found that their insurance did not cover losses due to terrorism. Since the 9/11 attacks, insurers have added exclusions for terrorism-related losses, making it difficult for businesses to claim compensation.

What is the 'coverage gap' mentioned in the script?

The 'coverage gap' refers to the lack of insurance coverage for business losses due to terrorism when there is no property damage. Businesses affected by terrorist activities like those in Borough Market are not protected against revenue loss in such cases.

How has the nature of terrorism evolved according to the script?

Terrorist attacks have shifted from large-scale bombings targeting infrastructure to smaller, urban attacks aimed at causing casualties and disrupting everyday life, such as attacks on crowded public places like markets, bridges, and boardwalks.

How did the insurance industry respond to the 9/11 attacks in terms of coverage for terrorism?

After the 9/11 attacks, insurers introduced exclusions for terrorism-related losses, requiring businesses to purchase additional terrorism insurance, which is often costly and limited.

What role does Pool Reinsurance play in terrorism insurance in Britain?

Pool Reinsurance, backed by the British government, was set up after IRA bombings in the 1990s to underwrite major terrorism insurance in Britain. It works to cover businesses against large-scale damage from terrorism.

What emotional response did traders and the community have when Borough Market reopened?

When Borough Market reopened, there was a strong sense of reclaiming the space. Traders were emotional, with some in tears, as they resumed their business activities after the attack.

How did Sean Cannon manage to get his insurer to review his claim?

Sean Cannon used a combination of pressure, political advocacy, and perseverance to get his insurer to review his claim, even though terrorism-related losses were initially not covered by his insurance policy.