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UK law change will see Pool Re cover business interruption linked to terrorism

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UK law change will see Pool Re cover business interruption linked to terrorism

The U.K. government will amend the law to allow Pool Reinsurance Co. Ltd., the U.K. government-supported body that backstops insurers for payouts related to terror incidents, to cover losses from business interruption that are not the result of commercial property damage.

The extension of cover will be allowed as soon as the government amends the Reinsurance (Acts of Terrorism) Act 1993. The Treasury said it will announce more details on the change in due course.

The reinsurer had said in November 2017 that it will begin underwriting risks from cyberterrorism including material damage and direct business interruption from April 2018.

Pool Re was set up in 1993, principally to back commercial property insurers.

The announcement came on the one-year anniversary of the Westminster Bridge attack in London, which was the first in a string of incidents in 2017. In June, terrorists killed eight people in the vicinity of London's Borough Market. Although that attack caused little property damage, the market and stores around it where forced to close for 10 days during the subsequent police investigation.