A change to the law means that Pool Re’s business interruption cover can now include losses which result from terrorist attacks, even if there has been no physical damage to property.

The Counter-Terrorism and Border Security Act 2019 received Royal Assent on 12 February 2019, and amended the Reinsurance (Acts of Terrorism) Act 1993 to expand the scope of Pool Re’s cover. This amendment corrects a technicality that has seen businesses left without cover where they have been unable to trade as a result of terrorist incidents, but have suffered no property damage on which to hang their claim for business interruption.

This was a particular problem for businesses following terrorist incidents such as the attack on London Bridge in June 2017, which left Borough Market closed, and traders without income, for nearly two weeks. Many of the traders and businesses affected had not suffered any damage to their property, so were left without cover by policies which covered business interruption only where it was associated with damage to property.

While we hope that this change to the law becomes a footnote in legal history, and that no business ever needs to rely on it, the amendment will be very welcome to business owners in the event of further terrorist attacks.

The Counter-Terrorism and Border Security Act 2019 can be found here.