Cost of terrorism insurance for small businesses set to fall sharply

Jun 5, 2018

The cost of terrorism insurance for small businesses is set to fall sharply after Pool Re, the government-backed insurer which provides the coverage, announced reduced premium rates for SMEs. This should make terrorism premiums significantly more competitive, especially outside of major urban areas, where a typical SME premium could now be less than £100.

Premium rating has also been reviewed for most companies with the ability to obtain discounts through completing vulnerability self-assessment checks and selecting higher deductibles.

Enhanced cover:

In addition to the improved premium terms, Pool Re confirmed the following cyber extension to their cover effective from 1st April 2018:

  • With terrorist organisations embracing social media and showing high levels of IT capability, it became apparent that these skills may be deployed in a more direct way to trigger damage or destruction of property. Pool Re has therefore extended its cover to include material damage and direct business interruption caused by acts of terrorism by the use of remote digital means such as hacking or virus.

How Yutree can help:

Yutree recommends protecting your assets and revenue following an act of terrorism, whether as an extension under your existing commercial combined policies through Pool Re or, on a bespoke policy for higher risks locations or exposures. Key areas to consider in addition to the standard terrorism cover provided include:

  • Following the terrorist attack at Borough Market, traders were unable to open for 11 days due to the ongoing police operation and a standard terrorism policy would not cover the substantial financial loss due to the lack of physical damage. A non-damage extension would provide cover for trading losses in such circumstances. The new proposed Financial Loss (non-damage) extension is therefore very welcome. Cover includes denial of access, loss of attraction and failure of public utilities.
  • Terrorism insurance for overseas property.
  • Individual protection for key exec’s and staff including kidnap, detention, hijacking and extortion.

Please contact Kevin Hancock or Simon Miller on 01638 660651 if you require any advice regarding terrorism insurance and further details can also be found at


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