Last week, counter-terrorism police outlined details of an insurance initiative which aims to benefit businesses and other organisations that make improvements to their security arrangements under the Government’s Crowded Places Programme, in a further example of the police and the private sector co-operating to ensure public safety.
At a briefing given to leading figures in the global insurance industry, it was announced that from October 2015 the new initiative organised by the Home Office, the Treasury and the Police, and agreed with terrorism risk insurer Pool Re, will offer companies that are actively engaged in the Crowded Places Programme the chance to apply for a Loss Mitigation Credit (LMC) on their Pool Re terrorism insurance costs.
In practice, if businesses that own commercial sites across the UK apply mitigation measures and security improvements to protect public sites and venues from terrorist attack, they will be eligible to apply for the LMC. Such companies can utilise a tool that the National Counter Terrorism Security Office has already developed – the ‘Protective Security Improvement Activity’ – to review and improve their security arrangements against terrorist attacks.
This initiative, following the amendments to the Terrorism Act 2000 (as discussed in a previous HFW insurance bulletin2), demonstrates a welcome continued collaboration between the state and the private sector, and the insurance industry in particular, to work towards mitigating risk to the public while allowing businesses to benefit commercially.