The insurance, underwritten at Lloyd's of London, provides an alternative to cover under the Pool Re reinsurance scheme, which was set up by the Government and leading insurance companies after the spate of bomb attacks on the City.
Pool Re, which reinsures the insurers against terrorism claims, was established in 1993 because reinsurers refused to provide further cover, particularly in the City, in view of the high risks involved. Because Pool Re has very strict criteria, the primary insurance available from the general insurance companies is relatively inflexible.
The new scheme, which is available only through brokers that are members of BIIBA, offers up to £25m on each location.
Only those locations at greatest risk from terrorism need be insured. The Lloyd's brokers that have established the scheme are Willis Corroon, Sedgwick, Bowring, Bain Hogg and Alexander & Alexander.Reuse content