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26 Mar, 2019|

Non-Damage Business Interruption Terrorism Insurance Cover

We blogged in June 2018 about Pool Re – a Government backed solution specifically designed to cover terrorist acts designed to overthrow or influence the Government. However, at the time of writing we looked at some of the limitations that the current scheme had. This included the fact that the scheme only applied if a business had suffered physical damage to their property or surrounding property as a result of the terrorist attack.

What about terrorism insurance for non-damage business interruption?

There was no provision for those businesses who had suffered non damage business interruption as a result of a terror attack. Something which we have seen have a significant impact on many businesses.

For example, in Salisbury following the Skripal attack which occurred on March 4th 2018. Now over a year on, reports suggest footfall is still 10% down compared to that before the incident, with the attack thought to have impacted the city’s ability to attract visitors. Likewise, many businesses faced denial of access as their premises were caught up in forensic examinations or behind police cordons etc.

However, the new Counter Terrorism and Border Security Bill 2018 looks to make sure businesses can also be covered for non-damage business interruption.

Counter Terrorism and Border Security Bill 2018 and Terrorism Insurance

On February 12th Pool Re welcomed news that Royal Assent had been given to the Counter-Terrorism and Border Security Bill 2018. The aim of the Bill is to:

– Allow Pool Re to cover losses incurred if a business cannot trade or is prevented from accessing its premises in the wake of a terrorist attack.
– Thus moving away from the current position whereby losses can only be covered if a business has suffered physical damage to their premises
– As a result of the change the UK terrorism reinsurance pool is the first in the world to include non-damage business interruption losses

It is an unfortunate situation that terrorism can and does pose a threat to business survival. But this news means that businesses can act to cover any potential gaps in their business interruption insurance coverage.

How to purchase non-damage business interruption terrorism insurance?

Businesses will still need to move to purchase the cover, cover which will be reinsured by Pool Re, so discussing it through with your broker may be a good first step.

Talk to us here at Anthony Jones for a full review of your business insurance, including your business interruption insurance – we’ll make sure you have the right cover in place.