Gap in terrorism insurance closed for UK businesses
- Published: Wednesday, 13 February 2019 09:36
UK Business owners will now find it easier to buy terrorism insurance that will pay out if they lose custom in the wake of a terror attack because they cannot trade or are prevented from accessing their premises.
The Counter Terrorism and Border Security Act 2019, which was brought into UK law on February 12th 2019, makes legal changes that means more insurers will offer new policies to businesses that include ‘losses from a terror attack that are not contingent on damage to commercial property’.
Until the new Act came into force, Pool Re, the government-backed terrorism reinsurer, could only reinsure losses incurred if a company’s premises had been physically damaged by terrorists. Business owners will now find it easier to buy terrorism insurance that will pay out if they lose custom in the wake of a terror attack because they cannot trade or are prevented from accessing their premises.
John Glen, Economic Secretary to the Treasury said: “When businesses raised their concerns about a gap in insurance cover following a terror attack, we worked with Pool Re to come up with a solution. Today, we’ve changed the law to give businesses peace of mind, helping them to insure themselves against financial loss as a result of a terrorist attack, even if there is no physical damage to their property. This means businesses will be able take out new and comprehensive policies to protect them in the future.”
The terrorism insurance gap was caused by a lack of insurers willing to take on risk without Pool Re’s support. The legal change means that this gap is now closed.