Aon: cost of a London attack underestimated

by Richard Kilner

Story link: Aon: cost of a London attack underestimated

Aon, the global insurance broker, has stated that the top accountants in London could be underestimating the potential cost of a catatstrophe such as flooding or a terrorist attack.

This would result in them subsequently overpaying for office space in the aftermath.

Although pandemic flu has been highlighted by the National Risk Register as the greatest potential risk, businesses in the City also face the possibility of flooding, fire damage or a terrorist attack.

Should a serious incident occur, firms may need to look for new premium office space which could be expensive.

Despite the cost being covered under a business interruption insurance policy, Aon is warning that the 12 month indemnity period may not be enough.

Costs will be incurred for rental whilst waiting to relocate, and other factors such as fines for delayed M&A.

Because of this, Aon advises business which may be at risk to have their risks monitored and assessed by a risk register.

Corresponding to this, the necessary insurance should be taken out, and contingency planning formulated.