For the purposes of the scheme, acts of terrorism are defined in accordance with the definition contained in the Reinsurance (Acts of Terrorism) Act 1993:
“acts of persons acting on behalf of, or in connection with, any organisation which carries out activities directed towards the overthrowing or influencing, by force or violence, of Her Majesty’s government in the United Kingdom or any other government de jure or de facto.”
It should be noted that, whilst an incident has to fall within this definition for an insurer to make recovery from Pool Re, the policy issued by the insurer is often written in much wider terms. Incidents that do not fall within the definition of an act of terrorism under the Pool Re scheme may nevertheless be covered under the relevant commercial property insurance policy. For example, most property policies routinely cover malicious damage.