The Cost Of Terrorism
It is impossible to put a price on the devastation resulting from a terror attack, as the effects can be measured in numerous ways from loss of life and distress, to business disruption, loss of revenue to the diminution of the countries international reputation.
London Attacks, 7 July 2005
It will be sometime before the true cost of the London Bombings can be calculated, as the extent of injuries and financial loss is not yet clear. Over £400,000 has been paid out by the Criminal Injuries Compensation Authority (CICA) to date, with bereaved relatives of the 52 people killed being entitled to £11,000 each plus funeral costs. Dependant children receiving £2,000 every year until they are eighteen.
Of the 700 people injured from the blast, some are unable to work as normal, face an uncertain financial future and require care. The most debilitated survivors will receive up to £500,000 each, with other limits set for loss of limbs, eyes, tinnitus and mental suffering. Many argue that a change in legislation is needed so that the value received reflects the value of a life and not public sympathy; several additional denotations have been given from charitable organisation.
The resulting costs are disproportional to the estimated costs of conducting a terror attack. From September 11, which cost only $500,000 to carry out, through to subsequent attacks in Bali, Istanbul, Madrid and London, the cost of an attack has decreased exponentially. The Madrid bombings are estimated to have cost $10,000, which is roughly 10 times the cost of the London bombings being only a few hundred pounds. The low costs make it difficult for authorities to fight terrorism through financial mechanisms alone.
Twin Towers, 11 September 2001
The most publicly reported and analysed terrorist incident remains that of the Twin Towers attack on September 11, 2001. A total of 40,000 people worked in the buildings, which saw a 15 million square feet of office space destroyed, 3014 people injured and more than 6,000 people reported missing. The damage has been estimated at nearly $80 billion, of which only $32.5 billion is insured. The majority of the losses were in workers compensation, life insurance, business interruption, event cancellation, property damage and liabilities. An average of $2m was received by the families for each death claim made to the US government.
Whilst the sense of loss felt by the American nation and indeed the world was huge and far ranging, the magnitude of the loss was even more graphic at a company sector level. The induced fear of flying and fears of cockpit security resulted in the airline industry having to lay off over 100,000 people, with the top 9 international airlines estimating losses of between $100 million and $250 million a day. The loss to the companies occupying the floor plates of the World Trade Centre struck by the airliners were as follows:
| Company | Employees | Missing | % Loss |
| Cantor Fitzgerald | 1000 | 680 | 68 |
| Fred Alger Management | 55 | 36 | 65 |
| Carr Futures | 141 | 70 | 50 |
| Sandler O'Neill & Partners | 100 | 67 | 67 |
| Keefe Bruyette & Woods | 171 | 67 | 39 |
| AON Corp | 1100 | 200 | 18 |
As Desiderius Erasmus said "prevention is better than cure", some would argue in cases where there is loss of life and/or serious injury that the pain and suffering caused has no cure. Complacency should not be derived from the unpredictability and frequency of current attacks.
World events are rarely forgotten and will be studied and copied by the next generation of disparate groups. The cost of providing anti-terrorism security is minuscule when compared to the consequences are resulting implications of a terrorist event occurring.
"The nature of the activities of which I have seen information is sufficiently alarming for me to re-emphasise the real and present danger of shocking terrorism acts involving suicide bombers. Further suicide bombings in the UK must be expected, and the targets are unpredictable." Lord Carlile, QC
