The Retailer Winter Edition 2023

WI NT ER 202 3

2 3

Insurance Implications Clearly the purpose of any life safety programme is to safeguard lives rather than simply to avoid potential liability. But, good engagement with Protect Duty will reduce the chances of poor response to an incident and the potential for negligence. And insurers will undoubtedly require additional information from insureds, material information on the qual ity of the risk management in place; arguably enabling differentiation between peer organisations when the markets are pricing for renewal. When considering financial resilience, an attack may generate impacts that are covered by property damage/business interruption (PDBI) related insurance solutions. Understanding the financial impact of non-damage events (typically, the impacts from non-explosive events) will help retailers decide whether broader insurance should be arranged for non-damage BI coverage. When there is potential for people to be affected within a retailer’s location, the potential for claims of negligence and possible liability must also be considered. Liability claims may not be about stopping the event but could focus on how an insured prepared for the impacts from these events as well as how they responded to limit the impact on the people within their space. In the insurance context, Protect Duty is primarily a Casualty programme consideration. Start Your Renewal Early Protect Duty is likely to become a legal requirement within the UK in 2023 and early engagement will reduce unanticipated operational and financial impacts and improve its integration into risk management activities. Aon can support our clients understand where they are in relation to the legislation (when it’s published), in addition to mapping out the “path to compliance” aligning risk management & Life Safety efforts with the aims of the Protect Duty legislation.

Retailers should begin discussions with their insurance broker outside of the usual Casualty programme renewal cycle, to give more time and space to understand and manage the additional information requirements from underwriters and allow clients to differentiate the quality of their risk management. The renewal of PALs’ Casualty programme is likely to be sooner than their requirement to demonstrate compliance with the Protect Duty. Aon has a number of proprietary solutions available to complement or back-fill Casualty programmes, should market appetite shift significantly for certain insureds.

Dan Fox dan.fox@aon.co.uk +44 (0)7769 742803

Scott Bolton scott.bolton1@aon.co.uk +44 (0) 771 463 8759

Whilst care has been taken in the production of this article and the information contained within it has been obtained from sources that Aon UK Limited believes to be reliable, Aon UK Limited does not warrant, represent or guarantee the accuracy, adequacy, completeness or fitness for any purpose of the article or any part of it and can accept no liability for any loss incurred in any way whatsoever by any person who may rely on it. In any case any recipient shall be entirely responsible for the use to which it puts this article. This article has been compiled using information available to us up to 21/12/23. Aon UK Limited is authorised and regulated by the Financial Conduct Authority. Registered in England and Wales. Registered number: 00210725. Registered Office: The Aon Centre, The Leadenhall Building, 122 Leadenhall Street, London EC3V 4AN. Tel: 020 7623 5500. FPNAT662