December 6, 2006
TT Club to offer "dirty bomb" insurance
The TT Club says it will offer nuclear and bio-chemical terrorism cover, starting from January 1, 2007.
Cover will be available for physical loss, business interruption and liabilities, and will be applicable in incidents involving both actual damage caused by an incident or device and when an incident occurs or a device is discovered causing significant trade disruption but no physical damage.
The club is offering cover for both direct and indirect business interruption, for example, members with goods delayed due to the closure of a third-party facility as a result of a nuclear or bio-chemical terrorism incident anywhere in the world.
Limit options will provide cover up to a maximum of $25 million for any one incident per member while indirect business interruption losses will be available for limits up to a maximum of $5 million, any one incident, per member. A pool aggregate limit for all claims in any one year of US$100m is expected to be achieved.
Brian Wood, TT Club's underwriting director, commented: "Concerns have been expressed within the industry regarding the potential security threat presented by the risk of such attacks on the international transport infrastructure. The club is always looking for options to improve the way in which its members' risk exposure can be managed and this pooling arrangement is a good example of finding a mutual solution to a common concern."
Mr Wood explained that premiums would be priced according to potential exposure and the size of limit chosen by the insured. In the event that there is no claim to the pool in any one year a 25% continuity credit will be offered to members who renew.
The TT Club is the international transport and logistics industry's leading provider of insurance and related risk management services. Its membership comprises ship operators, ports and terminals, road, rail and airfreight operators, logistics companies and container lessors. As a mutual insurer, the club exists to provide its policyholders with benefits that include specialist underwriting expertise, a world-wide office network providing claims management services, and first class risk management and loss prevention advice.