Terrorism risk insurance

By Flavia Mpagi

The news of the Nairobi Westgate Mall attack continues to send shock waves across the continent and indeed around the whole world. 

While hitting so close to home, and invoking memories still too fresh to erode, this is a stark reminder that the threat that exists in our lives is more real than perceived.

An attack of this nature means the loss of lives, injuries and the destruction of property. This does not discount the long lasting effects on the directly affected society as well as to the tourism sector. It has therefore become a cause for concern, and measures taken to mitigate loss resulting from an act of terror, of any kind is certainly money well spent. Terrorism risk insurance cover exists specifically with such a threat in mind, and it can be purchased from most insurance companies presently in the country.

Unfortunately, most standard insurance policies like the fire, life, health and motor comprehensive insurance policies often have exclusions for wars, civil wars, riots, strikes, civil commotion and even acts of terrorism. As such, it means you may not be protected from death; injuries, or even a broken windscreen resulting from a terrorist attack, for example. You should therefore establish the nature of cover your current insurance policy offers, and the need to purchase either a terrorism extension, or a separate terrorism risk insurance policy.

While exercising a high degree of caution is a must, it is vital to consider protection beyond metal detectors. Insurance does not prevent terrorist attacks, but will reduce the financial burden if they occur. Our hearts and prayers go out to the families of all the victims of the Westgate attack, and indeed those still living with the effects of the Kampala World Cup Bombings.

The author is a Chartered Insurer

flaviampagi@gmail.com