Do insurance policies cover the impacts of war?
Most insurance policies will typically contain an exclusion for the impacts of war and/or terrorism. As with all insurance, exact policies will vary but the war exclusion is a common one in many business insurance policies, as well as other insurances such as car and home insurance.
In some cases, it may be possible to take out a separate war insurance policy which will cover a specific range of risks linked to the impacts of war.
What do war exclusions mean for business insurance policies?
The war exclusion clause found in many business insurance policies will exclude cover for areas which result from acts of war, such as;
- Property damage
- Business interruption
So, if your business is impacted by the effects of war in any of these areas it is unlikely that you will be able to claim on your insurance. Unless you have a specific policy in place which covers war risks.
What areas should your business be aware of?
Supply chain disruption
War and conflict can have a significant impact on supply chains. Given the war exclusions which apply in many policies it is unlikely that any business interruption that you face due to supply chain disruption because of the impact of war would be covered.
As a business it may therefore be necessary for you to review your supply chains and if possible, make alterations to negate the impacts.
Cyber insurance
War and conflict can also bring with it an increased risk of cybercrime so your business may want to consider whether you are taking adequate steps to protect your business from cybercrime.
You may also want to consider cyber insurance – but do keep in mind whether the policy will extend to cybercrime which is related to war. Discuss this with your insurer or insurance broker to ensure that you have clarity over the cover that you are buying.
Business travel
As always, travel insurance is linked to advice from the Foreign, Commonwealth and Development Office (FCDO). If you have employees who travel for business, then ensure that they do not travel against advice issued by the FCDO. Travelling against advice issued by the FCDO will see travel insurance or business travel insurance be invalidated.
It is also your responsibility to ensure the safety of your employees so do not encourage travel which goes against FCDO advice.
You can find full details of how Association of British Insurers (ABI) members are supporting those who are helping the Ukrainian refugee humanitarian aid operation on the ABI website.
Understanding exactly what cover you have for your business and the aspects which are both included in your cover, as well as excluded is vital. There are many complexities to insurance, which we at Anthony Jones are well placed to understand. Working with us can give you the peace of mind of understanding exactly what cover you have. Get in touch with us to discuss your business insurance needs on 020 8290 9080 or email us at business@anthonyjones.com.
