The Duty to Protect will allow a direct cause of action for compensation through breach of statutory duty. There is an expectation under the Act that organisations will do the most they can, not the least and they will be expected to prove this.
There needs be specific responsibility at board level for adherence to this legislation and failings could lead to claims being pursued against individuals. This is likely to have an impact on Directors’ and Officers’ Liability insurance.
Currently Employers’ and Public Liability policies have terrorism cover included to a reduced limit, but consideration should be given to whether this is sufficient in the event of a terror incident. Employers’ Liability cover is limited to £5 million and Public Liability policies frequently restrict this to £2 or £5 million any one claim.
Insurers and reinsurers are likely to be concerned by the aggregation of this limit depending on proximity to others and there will be greater consideration given to this. Multiple parties could face allegations of negligence and failure to comply with statutory duty.
Greater underwriting consideration as to what the insured is doing to meet their duties under the Act will follow and could consider: Accumulation of people; adjacent exposures; venue accessibility; security measures in place; and interaction with third parties.
It is expected that insurers will start to focus their underwriting approach on this matter during 2022 – 2023 as this Act’s start date becomes clearer.