Terrorism Insurance England, Wales and Scotland



The effects of acts of terrorism are devastating on both a personal/social level.

No doubt, loss of life is singularly the most significant part of such attacks, with added financial implications to businesses caught up in these atrocities too.

In a recent study, the data showed that the five terrorist attacks in 2017 potentially led to a loss in economic output of £3 Billion.

Commercial insurance policies in the UK specifically exclude loss or damage caused through terrorism. Insurance is however available from Insurers for the payment of an additional premium either through the current Insurer who reinsures this to Pool Re or from Lloyds of London.

Businesses can protect themselves against the financial impacts of these incidents by ensuring their insurance contracts are extended to include terrorism. 

In recent times, businesses have not so much been affected by the physical damage caused by these attacks, but the financial disruption caused by necessary cordons following attacks and restriction of movements.

It is therefore also important to check that your insurance coverage extends to cover NDBI (Non-Damage Business Interruption).

Nick Symes, Director of Property Investors at Reich Insurance commented…. 

“In the aftermath of the Manchester Arena bombing, a police cordon was secured around the immediate area (less than a mile away from our own offices), bringing the locality to a standstill, as the police and security services continued their investigation. This led to a mass shut-down of all retailers, plus residential and commercial buildings within the cordon area, for some time. In the aftermath, over the subsequent weeks, local businesses reported a significant drop in footfall, as the city came to terms with such an atrocity. Without suitable insurance cover to fall back on, many of these businesses would unfortunately have collapsed very quickly.

Even in the case of the recent knife attack at the Arndale Centre, this led to a shutdown of the entire shopping centre, as police cleared the area, searching for any other potential risks to the public. In such large-scale investigations, the police and security services require as long as possible to ensure evidence is collected and areas are secured. Only then will businesses be able to consider the impact of lost business or potentially something much, much worse.”

There is no doubt that the threat of terrorism will continue and as the Security Services shut down one vector, the terrorists will move to others, so the threat will continue to evolve. Whilst it is difficult to prevent incidents occurring and injury or death, businesses can increase their insurance cover to minimise the financial effects on their business and ensure they can continue to trade post-incident.

To read more articles on the property sector from Nick Symes, Director of Property, please visit:



Tags: Business Interruption | Disaster Recovery | Loss Of Business | Pool Re