Recent developments in the Middle East are understandably creating concern for many of our clients both from a business perspective and, for some, personally.
Our role is to provide clear guidance on how events may interact with your insurance arrangements. While every policy is different, we have outlined below some of the areas that may be relevant.
As always, we are available to review your individual circumstances.
Commercial Insurance Considerations
War and Political Violence
Most commercial insurance policies contain exclusions relating to war or state-based conflict. In some cases, terrorism or political violence cover may be arranged separately or included via specialist extensions.
If your business has operations, contractual obligations, assets or supply chain exposure in the region, it would be prudent to review your documentation. We are happy to assist and, where necessary, seek clarification from insurers.
Marine, Cargo and Transit
For clients involved in international trade or logistics, insurers may review war risk exposure in certain territories or routes.
This can occasionally result in:
- Adjustments to premiums
- Notice of changes to war risk terms
- Additional underwriting queries
We are monitoring insurer communications and will contact clients directly where appropriate.
Business Travel & Directors’ Travel Cover
In addition to personal travel insurance, many clients will have travel protection embedded within business policies. This may include:
- Personal Accident (PA) and Business Travel policies
- Business & Leisure (Directors’ Policies)
- Commercial Combined policies, which often include business travel sections
The operation of cover will depend on policy wording, booking dates and, in some cases, official government travel advice.
If you have employees, directors or colleagues travelling to, from or through affected areas, we recommend reviewing your cover and emergency assistance arrangements.
Supply Chain and Business Interruption
Disruption to suppliers, trade routes or logistics networks can have wider implications.
It is important to note that many Business Interruption policies require physical damage to trigger cover. Extensions for contingent or non-damage interruption operate strictly in line with their specific terms.
If you are concerned about supplier exposure or contractual performance, please contact your usual adviser.
Sanctions
Geopolitical events can result in changes to international sanctions regimes. Insurance policies commonly include sanctions clauses which may restrict cover or claims payments where applicable regulations apply.
If you trade internationally and have concerns regarding territories or counterparties, we can help guide you to appropriate sources of advice.
Private Clients – Personal Travel Insurance
We are also receiving enquiries from clients with upcoming travel plans.
Travel insurance policies can respond differently depending on official government advice. In the UK, this is issued by the Foreign, Commonwealth & Development Office (FCDO).
Where the FCDO advises against “all travel” or “all but essential travel”:
- Cover may be restricted if travel is booked after such advice is issued.
- Certain sections of cover may not operate if travel proceeds against official guidance.
Cancellation claims are typically limited to specified insured events. A decision not to travel, in the absence of an insured trigger, is unlikely to be covered.
If you have any concerns regarding personal or business travel arrangements, please speak to us before making changes where possible.
How We Are Supporting Clients
We are:
- Monitoring insurer updates and market developments
- Reviewing policy wording on request
- Liaising directly with insurers where clarification is required
- Supporting clients with any related claims enquiries
If you would value a discussion about your business operations or personal travel plans, please contact your usual Clear Insurance Management adviser.
We will continue to keep the situation under review and provide further updates if appropriate.
This article is intended as general information only. All cover remains subject to individual policy terms, conditions, exclusions and insurer confirmation.
