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Threat Insurance - An Add-On Coverage That You Should Consider

In our increasingly polarized social environment, and increasingly vulnerable cyber landscape, serious threats made against Canadian businesses ­are on the rise. Protection against these threats is typically focused on covering the costs that could arise from those threats materializing into losses, rather than on the costs of responding to threats before they materialize. For example, temporarily closing your business and evacuating your team after receiving a threat could have significant financial impacts.

Thankfully, insurance coverage exists that can potentially offset these costs if your business is threatened. Below, we discuss the importance of threat insurance and how it can benefit your business by compensating for losses before a threatened event takes place.

What is Threat Coverage?
Threat coverage is typically added to sabotage and terrorism insurance policies. This type of coverage is put in place to protect your business from losses that might occur before a threatened outcome takes place. Evidently a threatened outcome and how it might be communicated can take on variety of interpretations – begging the question, what is considered to be a threat?

What is Considered to be a “Threat”?
Typically, an explicit warning of sabotage, terrorism, or malicious attack against your business, in the form of coercion, extortion, intimidation — and more — depending on your policy wording. Most importantly, the threatened outcome must not have yet materialized for the coverage to be applied.
Depending on your policy wording, coverage will trigger when a threat to your business results in a loss – be it related to a lockdown, evacuation, temporary closure, or otherwise.

How Can Threat Coverage Benefit Your Business?
Protecting your business from attacks is costly – so why not offset some of those costs when possible? Threat coverage provides you with the opportunity to do so by compensating for some of the costs associated with a shutdown of your business due to an explicit threat. Simply, should you need to evacuate your team, lockdown your premises, or temporarily close your business as a result of a specific threat, this coverage can cover those costs.

EQUA’s Malicious Attack and Terrorism Insurance
Threat coverage is included in our Malicious Attack and Terrorism program – an exclusive Canadian solution that provides comprehensive coverage for two types of events in a single policy. To learn more about our program and how your business can benefit, click here.

Have questions? Get in touch with our specialty brokers today: