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Last Updated: Saturday, 15 May, 2004, 11:41 GMT 12:41 UK
The cost of terrorism
Bishopsgate bomb
The total cost of the Bishopsgate bomb was believed to be 1bn
The loss of life and injury is not the only side effect of terrorist attacks.

As well as the human cost, terrorists have always had the cost to the economy in mind when they attack a target in the West.

Physical damage is only one way disaster can devastate and ultimately destroy a business.

Businesses can suffer in a number of other ways, for example if customers cannot reach the premises, if they cannot open due to utility services being out of action or if their suppliers have been affected by the attack.

For example, it has been estimated that the costs which can be directly attributed to September 11 are more than $100bn. This figure included life insurance, damage to property and the loss of production.

The Miken Institute calculated that the cost of damage to property alone was estimated at between $9bn and $13bn.

Expensive

In the UK - terrorism by groups such as the IRA has cost the country hundreds of millions of pounds over the past two decades.

The Bishopsgate and St Mary's Axe bombs in the heart of the city represented one of the most costly acts of terrorism on British soil.

It is estimated that a total of 325,000 square metres of office space was damaged by blasts in 1992, which resulted in the government paying out 800m worth of claims.

The total cost of loss of business and damage was estimated to be 1bn.

Out of business

Manchester bomb in 1996
Insurers paid out 411m after the Manchester IRA bomb
When Bishopsgate was attacked again the following year - the explosion damaged 278,000 square metres of space while an estimated 300m worth of damage was inflicted on the buildings and businesses in the surrounding area.

On top of that, a total of 17 companies were made homeless and a total of 137 buildings were damaged within a 400 metre radius of the bomb.

More recently, the IRA bombs in the London Docklands in 1996 are thought to have cost insurers 170m, while the Manchester bomb later that year resulted in around 200 people being injured in Manchester city centre.

It also lead to 411m being paid out in insurance claims.

More than 400 businesses in a half-mile radius of Manchester city centre were affected by the blast and the Home Office claimed that 40% of businesses affected by the Manchester bomb in 1996 never recovered.

SEE ALSO:
London under attack
06 May 04  |  Panorama
Wall of silence over terror threat
16 May 04  |  Panorama
How the attack unfolded
16 May 04  |  Panorama
Facts behind the fiction
16 May 04  |  Panorama
Terror timeline
15 May 04  |  Panorama
Terrorism: What they've said
15 May 04  |  Panorama
The role of the police
15 May 04  |  Panorama
Preparing for a crisis
15 May 04  |  Panorama
The panel
15 May 04  |  Panorama
Gaps in the system
15 May 04  |  Panorama
UK advice not up to scratch
15 May 04  |  Panorama
Your comments
14 May 04  |  Panorama


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