Terrorism risks to real estate: A best practice guide

Real estate companies and businesses that own one or more buildings are subject to property-related terrorism risks. At Chubb, we understand the need for terrorism and property insurance coverage to be seamlessly connected, to protect clients’ valuable assets. In this article, I outline the most pressing and common terrorism risks to real estate and ways that they can be mitigated.
 

Propaganda

Terror organisations typically publish propaganda – such as videos or articles – online. This content outlines the ways in which they suggest their followers should undertake attacks, such as methods, particular targets and desired outcomes. It is for this reason that propaganda is closely monitored by security, governmental and law enforcement agencies, to try to predict terrorist activity.
 

Some of the most common types of attacks have not changed in recent years. Much of the propaganda promotes small group or solo actions, with simple methods such as knife attacks or using a vehicle as a weapon. Understanding the kind of attacks being promoted is important, so businesses can plan mitigation strategies accordingly. 
 

Online deterrents  

Potential attackers may first research their intended location online. They will typically study the site’s website and relevant review websites to look for information on the building’s layout, security, and hazards. This is to identify targets and assist them with developing an understanding of the site, its security posture and any exploitable vulnerabilities.
 

Businesses can discourage hostile agents by publishing targeted messaging on their site. This text should be reassuring to the public but off putting to hostiles. Sharing information about the site’s safety, security and proactive customer services can be both comforting to a normal site user but disrupting to a hostile.
 

Physical deterrents 

Hostiles will almost always visit their planned site in advance to assess its suitability, refine attack strategies and attempt to increase their confidence in their attack plan. Ensuring that a site has visible and engaged security can act as an effective deterrent. Engaged security means actively monitoring security systems such as CCTV, and security personnel that interact with employees and visitors. Simply greeting visitors with a “hello” can be devastating to a hostile who is conducting reconnaissance.
 

Recent propaganda indicates that using vehicles as weapons is still an attractive, unsophisticated attack option. It may be worth considering vehicle mitigation measures, such as bollards, large planters or bicycle racks, to restrict access to the vicinity surrounding a building. 
 

Holistic security

Real estate companies should understand the terrorism threats they face, identify the vulnerabilities at and around their buildings and introduce holistic security management responses with clear leadership. It is important to think about the wider surroundings of a building and the potential risks there. Being situated near a place of interest, for example a notable monument or building, may mean that the risk of a hostile attack is more likely. Similarly, if a site has publicly accessible space abutting it, it is worth taking steps to understand the risks of those spaces and perhaps implement security measures. This is because there is a reputational risk involved should an attack happen in the vicinity of a named site. 
 

Long term security planning 

Training all staff in security policy and standards, not just those employed in security roles, can be very beneficial for risk mitigation. Implementing an incident response plan can help staff members to understand how to behave if an incident occurs. 

It is also recommended that businesses test out their incident response plan with the emergency services: the police, fire and ambulance services. This is so that they can make sure that they are able to respond to an attack in the most effective and safest manner.
 

Terrorism Risk Evaluation Services

Unique in the market, Chubb’s Terrorism Risk Evaluation Service (TRES) enables insureds to benefit from our expertise and experience in counterterrorism and protective security. Working with external risk consultancies and regional intelligence partners, and undertaking a detailed onsite assessment, TRES can identify vulnerabilities and recommend best practices to strengthen property and site security. The insights briefly summarised in this article give an insight into the property expertise we bring to every TRES client.
 

At Chubb, our Real Estate Industry Practice is backed by an enhanced proposition which includes specialist Real Estate underwriters, dedicated account engineers and Real Estate claims specialists, all underpinned by Chubb's global presence and local knowledge. Contact us to discover how our Real Estate insurance solutions can benefit you and your clients’ real estate portfolios and operations.