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City Underwriters Limited Add Terrorism Protection

City Underwriters Limited Add Terrorism Protection

No one wants to claim on their insurance. Doing so is a reflection of a problem – a disaster even. Of all the covers that you could claim against, terrorism insurance is arguably the most frightening. Picking up the pieces of a life and a business that’s fallen victim to an act of terror is something that most people wouldn’t want to even contemplate.

Sadly, the uncertain world in which we live in has made the possibility of an attack an ever-present danger. MI5’s current level of threat remains at ‘Severe’ – just one below ‘Critical’ which indicates an attack is expected.

Until recently UK insurers weren’t offering terrorism insurance as part of their commercial policies. Their decision came in the wake of 1992’s attack on the Baltic Exchange in London. To step into the breach and provide some sort of cover, the government and the insurance industry established the Pool Reinsurance Company (Pool Re). Alas Pool Re relies on the Treasury declaring something to be an act of terrorism and this has significantly reduced the number of eligible claims.


New Terrorism Insurance Laws: New Terrorism Product


Following February’s change in the law, businesses are now able to better protect themselves from the financial losses and disruption caused by terror attacks. City Underwriters Limited are delighted to be able to extend terrorism protection to existing and new policy holders with our access to a new terrorism product, one that offers significant benefits over Poole Re, including:

  • A broader terrorism definition – under this product a terrorist act has a wider definition. It is an act, including the use of force or violence, of any person or group(s), whether acting alone or on behalf or in connection with any organisation(s), committed for political, religious or ideological purposes including the intention to influence any government and/or to put the public in fear for such purposes. This means that some of the recent attacks we have seen which weren’t declared as terrorist acts by the Treasury would be covered
  • Cover offered to reflect the changing face of terror attacks – Pool Re was based on traditional terrorist methods such as explosions. Recent years have seen attacks carried out with knives, vehicles and guns too. Such attacks may not result in property damage, in which case Pool Re wouldn’t pay out. These new style attacks can cause significant business disruption through areas being cordoned off, businesses being inaccessible or temporarily closed, and this is something this new product takes account of
  • Flexibility on the Basis of Cover – there’s no need to follow the underlying cover and no need to insure every property. Instead you can pick and choose the cover you require and ‘select against’ at will
  • Competitive premiums – in almost all cases this policy will be cheaper and more flexible than Pool Re

Like to Know More? Contact City Underwriters


This new terrorism product is a welcome addition to the CUL portfolio and one that is, sadly, a seriously wise option for businesses of all kinds. With its innate flexibility and competitive pricing, it is well worth adding on to your existing cover. If you would like to know more, then please get in touch by calling Paul Mosley on (0207) 998 7342 or email Paul here.