Martyn’s Law became part of UK legislation on April 3, when Royal Assent was achieved for a piece of landmark anti-terror legislation also known as the Terrorism (Protection of Premises) Act.  Named after Manchester Arena terror victim, Martyn Hett, this new legislation will bridge a gap in everyday defences against terrorism.  So what sorts of terrorism risk measures will more businesses now need to take?

The legislation is all about ensuring that more businesses are prepared for terror attacks and have measures in place to keep people safe.  That is likely to include your business, if you have a venue that is publicly accessible and can accommodate more than 200 people.

Which businesses need to increase terrorism risk measures?

Those governed by these new anti-terror laws are from many different sectors.  Although much of the focus has fallen on the nighttime economy, events, and the food and drink and hospitality sectors, it also applies to many other venues.  This includes those used for purposes such as worship, education, retail, public services, leisure and tourism, sport, community gatherings, transport and healthcare.

Now the original Bill has become law, there are likely to be around 24 months in which businesses need to get themselves into a position in which they are operationally compliant.  How much is needed will depend upon which of two tiers the venue falls into.

What terrorism risk measures do UK businesses need to take?

Although exact guidance is not yet available, those who can welcome more than 200 and up to 799 people will need to be prepared under what is called ‘standard duty’ provisions.  This means training staff in measures they need to take to keep people safe.  It means having a plan and clear and practical actions to follow and has an emphasis on evacuation, invacuation (finding a safe place within the premises in which to lock down) and communication with individuals on the premises.

If the business can accommodate more than 800 people, it will need further measures, as these are classed as ‘enhanced duty premises’.  These premises need to do all that is reasonably practicable to reduce the vulnerability of the premises, or an event, to an act of terrorism. They then also need to attempt to reduce the physical harm that could be caused to individuals on the premises.  This means monitoring both the premises and the immediate vicinity, so might entail employing security staff or having CCTV cameras.  Measures might include bag searches, the installation of body scanners and the implementation of vehicle checks.

The responsible person

In all cases, there will be a ‘responsible person’ with ultimate responsibility for the premises.  If an event is staged at such a venue that has day-to-day control of operations, such as a stately home, then it will be the venue that is deemed the responsible person.  If a crèche were held in a hired space in a church hall, then the church hall would be the responsible person that needed to have plans in place.

The regulator will sit within the Security Industry Authority and will be responsible for delivering support and advice but also carrying out the inspections that ensure compliance.  The new law will be implemented UK-wide, in England, Wales, Scotland and Northern Ireland.

Premises will need to document their actions and provide an assessment of how the measures they have taken address their duty, their vulnerabilities and the need to safeguard people from harm.

What are the penalties for non-compliance?

 The regulator will be able to issue notices that restrict business activities or capacities at a venue that is not complying the law’s requirements.  This could include prohibition on operating or staging an event. Fines will also be levied, with the maximum non-compliance fine being £10,000 for a standard duty premises and whichever is the greater, of £18 million or 5% of worldwide revenue, for an enhanced duty premises.  Daily fines of £500 and £50,000, respectively, will also be levied, if necessary.

Get your terror risk assessment ready now

24 months sounds like a long time but months can fly by. There is absolutely nothing to stop businesses getting on the front foot with this and being prepared.

Step one should be a terror risk assessment.  Doing that now is a great idea, as it will help highlight the extent of the risk and, therefore, the likely amount of work to be done and the facilities needing to be provided.  All of that helps with scheduling in elements such as training, whilst also providing an idea of the budget that will be required to implement measures.

This is likely to bring some worst-case scenario planning into play and actually testing current systems, through some role play, could be a good way to identify gaps. Crisis planning is always at its most robust when mock scenarios test the systems, so build that into your thinking.  Ask ‘what would we do’ and think logically about the situation that might emerge around that question.

Why businesses should consider terrorism insurance

There is another thing to be considered at this point in time.  The UK has suffered 15 domestic terror attacks since 2017 and 43 late-stage plots that have been disrupted by the security authorities.  Other incidents have not officially been declared terror attacks but have had equally devastating impacts, including the Southport attack and its aftermath.  The nature of terror attacks is continually evolving.  With that comes a far more random nature to the threat.  Whilst, at one time, targets were high profile and in the biggest city centres, they can now be on any street, in any place.

Perhaps part of the reason behind Martyn’s Law is to shake up thinking and escape the ‘it could never happen here’ mentality.  If that seed of thought does emerge, a business should also then be asking itself why it does not have terrorism insurance in place.

Why do businesses not have terrorism insurance?

Often, this is because businesses have not considered the terror risk, or recognised that terror is not a peril covered by their standard commercial property insurance. Most commercial property insurance policies exclude any claims made for situations involving political, religious, or ideologically motivated attacks.  Unless you have a specific terrorism insurance policy or add-on to your policy, you could suffer significant losses in the event of an attack.

A terrorism insurance policy usually has two parts to it.  The first covers the physical damage we traditionally associate with terror attacks in which bombs, guns or vehicles are used as weapons.  This will go so far as to pick up the costs of total property demolition and rubble removal, if the post-attack situation necessitates that.

Covering business losses caused by terror attacks

The second element is not about physical damage, but relates to the losses that occur when terrorism makes it impossible to continue running a business in a normal way.  You may not be able to trade from your building and incur costs in moving premises, renting new equipment and making customers aware of your new address.  Not trading as normal may well affect your profitability and earnings.  The denial of access to your property will be a real issue.

In other cases, you could be a victim of loss of attraction.  If your area has been hit by an attack, people may just stop frequenting your business, with a sharp drop off in trade being evidenced.  Perceptions, as well as a nervousness to venture to a place where something bad has happened, can affect many businesses not directly impacted by the original incident.

Government and local authority decisions may mean that you cannot lay on the event you had intended to create.

Some policies will also extend cover to incidents involving political unrest and rioting and you may also be able to gain cover for loss of goods in looting incidents.

How to buy your terrorism insurance

When buying your terrorism insurance, you should discuss all of these elements with a professional broker.  Having face-to-face contact with a local broker allows them to review your business and assess what type of cover is most appropriate for your business, on an individual basis.

It is really important to have this expertise when buying your terrorism insurance, as it is easy to find yourself under-insured, if you try to do things yourself.  For the property element of the cover, you need a really accurate assessment of the sum insured that needs to be protected, which is not the same as market value of the property.  Things can be even trickier when trying to assess the business interruption cover that you need.  A professional broker can guide you through all of this and ensure that you do not make costly mistakes.

Do bear in mind that terrorism insurance will also protect you, your employees and your customers, at a personal injury level as well, providing benefits if injuries occur.  This is very much in line with the ethos of Martyn’s Law, as it seeks to extend a wider blanket of protection to those caught up in a situation and in the wrong place, at the wrong time.

To talk to us about terrorism insurance call 0113 244 8686, or choose a local broker from our local broker map.