SME: Everything you need to know about ‘Terrorism Insurance’.

Jun 14, 2024

1. Does my business need terrorism insurance? There are no bombs going off locally!

Terrorism is a random, indiscriminate peril that may be targeted at major towns and cities but could happen anywhere. A terrorist attack could destroy your business either by damaging it or by restricting access to it. Could your business survive being closed for two weeks without insurance? At Pool Re, we recommend you consider a terrorism cover for your business.

2. Is my business covered against terrorism risk? My policy states ‘all-risks’

Commercial property policies typically exclude terrorism damage, however it should be possible to add it to your current policy. We recommend you contact your insurance provider or broker to explore your options.  

3. How does terrorism insurance work and when does it trigger?

Once the UK government has confirmed that the event was an act of terrorism, and you have a terrorism cover, you will be entitled to make a claim for the damages or non-damage interruption caused by the attack.

4. When might a terrorism claim be made? Can you give me some examples.

  • An explosion has directly impacted your premises
  • An explosion has affected one of your suppliers/customers
  • An explosion in the vicinity has prevented access to your business
  • A non-damage incident (gun, knife, vehicle) that has prevented access to your business
  • A chemical, biological, radiological or nuclear attack has affected your business.

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    5. Where can I buy Terrorism insurance cover?

    Most Insurance companies offer terrorism risk insurance. We recommend you contact your current property insurer to confirm whether it is included in your policy or not. If not, you can request for it to be added. You may also get in touch with an insurance broker. 

    6. What about cyber terrorism?

    Damage could be caused to your business by remote means; for example: machines, processes, safety systems could be interfered with and impact your business. Terrorism insurance can cover this.  

    7. What is excluded in a commercial terrorism insurance policy?

    War and certain cyber terrorism risks such as damage to intangible property, for example, data.

    8. What does Pool Re terrorism insurance cover?

    Pool Re is a reinsurance company, that covers damage to commercial property and business interruption caused by an act of terrorism and cover for non-damage business interruption is also available for purchase. Pool Re provide this cover for Insurance companies, that will then protect your business against terrorism risk.