Why are SMEs vulnerable against terrorist attacks?

Jun 14, 2024

No-one ever expects a terrorist attack.

On 22 May 2017, an Islamist extremist suicide bomber detonated a shrapnel – laden homemade bomb as people were leaving the Manchester Arena following a concert by American pop singer Ariana Grande. Twenty-two people were killed, and 237 were injured, many of them children. Many more suffered psychological trauma. Many businesses operating near to the Arena were directly or indirectly affected by the impact of the bombing. An independent report commissioned by Pool Re, produced in 2018 suggests many of those businesses had little to no protective measures in place for their people or property, and not one had a plan for dealing with significant events like a terrorist attack.

On 3 June 2017, a terrorist attack on London Bridge and Borough Market lasted 10 just minutes. In that time, the three terrorists killed eight people and seriously injured 48 others, 19 critically, before themselves being shot dead. In the aftermath many businesses were forced to close as a result of the police cordon. In Borough Market alone, estimated losses were £1.4m at minimum. Stalls and businesses were forced to cease trading for 10 days, with some reportedly losing up to £100,000.

SMEs are especially vulnerable

Terrorist attacks can occur anywhere, at any time, with little or no warning. Restaurants, bars, music venues, hotels and nightclubs continue to represent potentially ‘soft’ targets for terrorists.

Among the UK’s SMEs, there is limited evidence that SMEs understand the threat or have prepared for a terrorism incident. A study by the Federation of Small Businesses (FSB) in 2022 reported that only 4% of small businesses had purchased terrorism insurance, leaving the majority at risk of uncoverable losses in the event of an attack. Alarmingly, many business owners admit to having no business continuity, disaster recovery or crisis management plans in place at all.

Protecting your people and property

Currently there is no requirement for SMEs to implement security measures to reduce the risk from terrorism. However, following the Martyn’s Law campaign by Figen Murray, the mother of Martyn Hett, who died in the Manchester Arena attack, the Government intends introduce a new law that will require many businesses to assess terrorism risks for the first time. It is estimated that thousands of UK SMEs would be impacted by the new regulation.