There’s one type of insurance that every business should have, but no one wants to talk about: terrorism insurance. As independent agents, we have to be able to have tough conversations with clients. We look out for and protect our clients, and that means being real about the state of the world we live in and always erring on the side of caution. Unfortunately, in today’s climate, you should be talking to your clients about getting extra Property & Casualty coverage for an act of terror.
P&C rider for acts of terrorism
When we are talking about the amount of P&C and liability insurance a business needs, we go through many scary scenarios. Natural disasters, accidents on the job, lawsuits, and other such occurrences are all part of the reality of owning a business. Today, we have to think about the risk of a terrorist attack on your business, as well as an attack near your business.
Businesses at high risk for terrorism
Whether foreign or domestic, terror is all around us. We don’t want to think about it, we’d like to pretend it won’t happen to us, but as agents serving the best interest of our clients, we have to be able to bring up the absolute worst case scenario. Of course, not every business is going to be at risk, so before you start describing terrorism scenarios with the local ice cream shop, maybe take a step back and think if you should focus more on regular P&C insurance in case the freezer fails, and not on whether they need to add a terrorism rider, as well.
When determining if you should broach the subject of terrorism insurance with your client, consider:
- The location of the business – is it near high traffic areas where large crowds gather? The business itself may not be a target, but the location might.
- Type of business – high-risk industries like gas and energy should definitely consider terrorism insurance. Any business that sparks political, religious or ideological debate may also be considered at risk.
Independent agents working together
It’s tough to talk about terrorism with your clients. The good news is, you are not alone. As a member of Affordable American Insurance, you have a large network of independent insurance agents in Colorado, Arizona, and Utah. We are all striving to protect our clients to the best of our ability, and that means preparing them for the worst. At AAI, we are always learning and evolving, and together, we share best practices and industry knowledge so that we can all win as a team. That includes the best way to broach the tough conversation, like whether a client should consider adding more P&C insurance to cover an act of terror.