Terrorism cover not included when policies in a company or trust name

What many businesses may not know, however, is that although terrorism cover is automatically included in household insurance policies, this is not the case when it comes to policies in a company or trust name. This includes most farms and estates. Instead it must be added to a standard policy by request.

The reason for this dates back to the 1990s. With the IRA actively pursuing its hostile agenda, insurers withdrew terrorism cover for businesses because the risk was considered too great. Instead a government backed initiative known as Pool Re was established. Run by the insurance industry, but with the reassurance of funding from the Treasury to support any claim over a certain level resulting from terrorist activity, it remains in place today.

All the most significant providers of commercial property insurance in the UK participate in Pool Re, yet this does not mean premiums remain standard. Instead each insurer sets its own level so that rates remain competitive.

Household policies will also exclude terrorism if issued in a company name or in the name of trustees. In some circumstances this exclusion may be waived if the main resident of the house is also one of the trustees.

Anyone interested in looking into the addition of terrorism cover should get in touch and although it may not be appropriate for everyone, your broker can ensure adequate cover is in place.