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, following a change in the law
The Counter Terrorism and Border Security Act 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’.
Currently, Pool Re, the government-backed terrorism reinsurer, can only reinsure losses incurred if a company’s premises had been physically damaged by terrorists, but not if a business loses custom because it cannot trade or access premises as a result of an attack on a nearby facility.
This resulted in a ‘terrorism insurance gap’ as there was a lack of insurers willing to take on risk without Pool Re’s support.
John Glen, economic secretary to the Treasury said: ‘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.’
Report by Pat Sweet
