The Public Liability Insurance Blog

Dragon insurance

George and the DragonWith it being St. George’s day, we’ve been thinking about dragons today. St. George is of course famous for driving the noble flying and fire-breathing race of giant reptiles into extinction and we celebrate him for that. But what if the dragons came back?

Is your business prepared for a dragon attack and what can you do to protect yourself?

Assumptions: For the purposes of this article, we are going to assume that “attack by dragon” classifies as a natural disaster. Considering the rarity of marauding fire breathing lizards in this day and age, it is not a scenario that many actuaries will have considered and factored into their calculations. Plus, the chap from underwriting looked at me really funny when I asked him about it and I couldn’t get a straight answer.

Image: Saint George slaying a very small dragon to impress the ladies and by looks of things his horse - by Raphael.

Property damage

The first obvious thing to consider if your business is attacked by a dragon is that there’s probably going to be a lot of damage to your property. Although fire damage is highly likely, structural damage is equally possible with the larger dragons able to very easily tear apart brickwork.

Depending on how underwriters might feel about dragons and their general disposition towards the attack, this could also classify as malicious damage and vandalism. Thankfully for your business, both forms of property damage can be covered and your policy can include an option to pay out in the event of needing to repair or even rebuild your premises.

Business interruption

With the devastation that a fully-grown adult dragon can cause, or even a smaller juvenile dragon if you’re unlucky with the fire-breathing element, a full rebuild of your property is quite likely to be required. In this case, business interruption could prove invaluable.

You can rarely maintain normal trade whilst your property is being rebuilt and the amount of time that it can take to get back up on your feet can easily exceed two years, especially if your premises are located in an area that is hard for industrial vehicles to access, or if you work out of a listed building requiring extra consideration and specific hard-to-acquire building materials.

Business interruption will pay out to give you a steady income based on your stated turnover in the event of being unable to trade under certain scenarios. Your main worry in this instance would be if the dragon came back.

Money cover

DragonMany dragons are drawn to gold and precious metals, which we suspect could include coins. Although modern coins contain very little in the way of precious metals these days, as we have moved with the times, one can assume dragons might have done too.

You can cover any money you keep on the premises as part of your business insurance policy. This is often separate to covering your stock, which is also possible and could of course equally be at risk from dragon attack.

Image: A small business owner tries to persuade a dragon to leave his coffee shop alone. Image credit David Revoy.

Glass cover

If you operate on the high street and have street facing windows or signage, these are incredibly susceptible to indirect dragon attacks. If for example your property is next to a jewellers or a food store, two of the most likely businesses to be targeted, then your store front or street facing windows could end up becoming collateral damage, perhaps due to the sheer bulk of the dragon careening into other buildings or from some of the larger dragon’s deafening roar which can shatter glass.

Glass cover addresses this specifically, covering not only the cost of materials, but also the cost of call-out fees which can be particularly high in well known trouble spots.

It’s not just dragons that cause this damage

The risks of getting attacked by a dragon are admittedly remote and because of this we don’t actually offer a dedicated dragon insurance package. However, a lot of the damage mentioned above can be caused by other things that occur much more frequently. The risk of property damage due to fire is always higher than you might think and it is of course not just dragons that might be out to steal your stock or the money kept on your property.

Make sure your business is covered for the basic things that can affect you and you will sleep better at night. A dragon attack is unlikely, but there are plenty of similar things that can still trip you up that ultimately have a similar affect on your business.

Finally, if you do see a dragon and it’s coming your way, the best advice we can offer is to stay calm, raise the alarm and get as far away form it as possible.

Written by David Hing for YOUR Insurance, a broker that likes to think of all of risks that could affect your business but wouldn’t seriously sell you dragon insurance.