Brokers must flag limitations of civil disobedience insurance
Publication date:
20 July 2021
Last updated:
18 December 2023
Author(s):
Chartered Insurance Institute
Brokers should help their customers and clients to understand the current limitations of civil disobedience insurance and consider what actions they need to protect against future events, rising stars of the profession have recommended.
Guidance produced by the Chartered Insurance Institute’s New Generation Broking Group highlights the limitations of current civil disobedience cover, what are the options for those who want that level of cover and examines whether the policies that are currently available are affordable for businesses that want this type of protection.
Actions that businesses can take to reduce the risk of being financially affected by civil disobedience and how they can ensure a claim is successful is also detailed in the guidance.
James Nattrass, Member of the New Generation Broking Group, said: “No single insurance product currently covers civil disobedience fully, so it is vital that insurance brokers clearly articulate the limitations of the products and options available for affected businesses.
“It is like the approach of a hurricane – you can’t stop civil disobedience but there are actions you can take to survive the more innovative ways of protest that are emerging that have moved towards more direct action.”
Hannah Meads, Member of the New Generation Broking Group, said: “There isn’t a standard definition of civil disobedience. As a profession, we could get into hot water if we do not clearly define what are the limitations of current cover.”
Kevin Hancock, Chair of the Society of Insurance Broking, said: “Civil unrest can cost a business dearly, making the latest New Generation report a must read.
“The rising stars of insurance broking who make-up or New Generation Broking Group have done a great job of explaining how the profession needs to be clear, open and transparent on how this cover can protect company balance sheets and what actions can be taken to reduce the risk of unrest eating into their reserves.
“As ever, it is crucial that brokers take the time to discuss the insurance programme with the client and identify potential gaps. Those gaps might, ultimately, be self-insured but it is important that a knowledgeable decision is made by the client.”
This document is believed to be accurate but is not intended as a basis of knowledge upon which advice can be given. Neither the author (personal or corporate), the CII group, local institute or Society, or any of the officers or employees of those organisations accept any responsibility for any loss occasioned to any person acting or refraining from action as a result of the data or opinions included in this material. Opinions expressed are those of the author or authors and not necessarily those of the CII group, local institutes, or Societies.