Loss Of Attraction Insurance

In 2013, during the Gezi Park Riots in Istanbul, many hotels around Taksim incurred business losses due to cancelled reservations caused by civil commotion, although they never got any physical damage. Existing policies of the hotel owners did not cover such perils thus they couldn’t received claim payments for these losses at the time. Also terrorist attacks in Paris in November 2015 resulted in a similar effect to hotels which caused a considerable drop in their reservations.

Whether or not terrorist act results in a physical damage to hotels, it negatively effects the businesses of such enterprises. By Loss of Attraction Coverage, it is possible to have an insurance for loss of profit which arises out of incidents where there is no physical damage to premise.

The purchase of a Loss of Attraction policy can cover a business for a downturn in their profits in the aftermath of a terrorist event, even if the business itself did not suffer any physical damage.

Imagine you are running a hotel or tourist attraction and suddenly a terrorist act takes place and for the short term every one cancels their booking due to fear that the situation may repeat itself. The operator of the facility suddenly has a big hole in their budget until the area normalises again and customers return.

• The cover can be set to respond to events that occur in a specified radius of the business or agreed locations.
• Bespoke level of profit reduction, as a consequence of an insured event, that triggers a claim.
• The agreed level of losses can be covered for up to twelve months or, if sooner, until profit levels return to the trigger level.
• The option to include cover in the event of a "government lockdown" resulting from a terrorist act.

A range of businesses concerned about a loss of income resulting from a terrorist incident can benefit from Loss of Attraction cover including:

• Hotels
• Restaurants, cafes and bars Ø Retailers
• Tourist attractions