LONDON, March 22 (Reuters) - Pool Re, which helps insurers pay out claims on property damage caused by militant attacks, will extend its cover to include more cases of interruption to business activity.
The British government said on Thursday it planned to change the law to allow Pool Re to cover business interruption which is not linked to property damage.
Pool Re, set up in 1993, is financed by the insurance industry with government backing. Pay-outs depend on the British government deeming an attack to be terror-related.
Following attacks in London and Manchester last year, businesses lost revenue due to police cordons which restricted access, even though their property was not harmed.
Julian Enoizi, chief executive of Pool Re, said in a statement the amendment meant “businesses can be confident they will be covered in the event of a terrorist attack, and able to get back on their feet quickly”.
Fewer than 3 percent of small businesses buy this type of insurance, Graeme Trudgill, executive director of the British Insurance Brokers’ Association said.
Pool Re is also extending its cover to cyber attacks on property from next month. Industry participants are also looking at more effective ways to cover vehicles which are used as weapons.
Reporting by Carolyn Cohn. Editing by Jane Merriman