Is Pool Re Terrorism cover fit for purpose and is there an alternative?

The threat of Terrorism throughout the world is rising & extremist groups are now global and may target property anywhere in the world, rarely giving warning!

Organisations and individuals may not be the intended target themselves, yet can still be affected by terrorism related activity or events occurring in the proximity to their own operation. An attack not on, but simply near your premises, could result in property damage, business interruption, legal liability issues and denial of access, relocation costs and long-term damage to reputation.

Terrorism insurance is also a requirement for many commercial property leases, and is often listed as a condition for bank lending. This has made Terrorism insurance an important consideration for a client seeking to mitigate their exposure to risk.


The Pool Re scheme, was set up in conjunction with HM Government in 1993 in response to a series of attacks related to the Northern Ireland troubles. Pool Re responds to terrorism losses which, before 1993, would have been covered by the property insurer and a large majority of Property insurers are obliged to use this scheme and cannot offer an alternative terrorism option. One of the limitations where Pool Re terrorism insurance is concerned, is that “attacks must be committed by individuals connected to an organisation which is seeking to influence or overthrow a government by force or violence”.

In 2017, there were several terrorism events throughout the UK

It took 26 days from the date of incident at London Bridge and Borough Market to be classified by the government as acts of Terrorism!

Local businesses could not make a claim under their terrorism insurance until the government made this declaration.

Even after 26 Days, local businesses still could not make a claim for denial of access to their properties as they had not suffered any physical damage to them. It is estimated that local businesses lost almost £2million due to loss of stock, produce, contracts and reservations due to the police cordon barring them access to their premises.

Over 90% of these businesses purchased their terrorism insurance from Pool Re.


Contrary to popular belief there are alternatives to Pool Re available now which amongst other things will provide cover from acts by individuals, will allow selection of cover on individual properties & not just the whole portfolio, are not dependent on HM treasury to agree whether an event was terrorism all at competitive premiums.

What next?

To find out more information about your terrorism insurance options, please contact Pi Property Insurance on 01789 761660.

*Source Pool Re – Insight, Issue 6, December 2017

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