“Sensible change” was how Association of British Insurers (ABI) director of general insurance policy James Dalton described the legislative amendment that will now enable Pool Re to cover non-damage business interruption.
Also welcoming the Royal Assent granted to the Counter-Terrorism and Border Security Bill 2018 was the British Insurance Brokers’ Association (BIBA), whose executive director Graeme Trudgill believes the changing nature of terrorism is leaving businesses exposed.
“This legislation is something BIBA has campaigned for with the support of our members, Pool Re itself, and Members of Parliament including Neil Coyle MP whose constituency includes Borough Market which was badly affected by an attack in 2017,” noted Trudgill, who sees the new Act as “good news for all businesses.”
The trade body is of the view that the changes will help organisations and increase resilience.
Previously, the UK’s terrorism reinsurance pool could only cover losses incurred if there was physical damage to a commercial property during a terrorist attack – leaving a gap in Pool Re’s coverage. The government-backed mutual, unlike private terrorism insurers, did not provide protection against business interruption losses to non-damaged enterprises.
“This is a sensible step in response to the changing nature of terrorism, to ensure businesses can access cover to support them through the disruption which can be caused by an attack,” commented the ABI.
Meanwhile BIBA’s Trudgill added: “We also recognise the need to encourage more small businesses to buy any kind of terrorism cover as fewer than 3% of SMEs take up any cover at all and we will in conjunction with Pool Re be delivering a guide to help businesses understand their risks and helping brokers to access insurance for their clients.”
