Terrorism Insurance and Risk Management
Pool Re Terrorism Cover
Pool Re provides Terrorism reinsurance protection for its member companies, in order that they can provide Property Damage and Business Interruption Terrorism cover for their policyholders.
Norwich Union is a member of Pool Re and Terrorism cover is available for Norwich Union policyholders where we hold a minimum of the fire and explosion cover for that policyholder.
Cover is only available in Great Britain (England, Wales and Scotland) but separate arrangements are in place for the remainder of the UK (Northern Ireland, the Channel Islands and the Isle of Man.)
Please discuss with your normal Norwich Union contact if you need more information on these arrangements.
Cover is on a full "all risks" basis which will include nuclear, radiological, chemical and biological losses. The only exclusions are "war" and "e-risks".
Pool Re is backed by the Government and for Pool Re to be liable for claims the Treasury must certify an event as an Act of Terrorism but before they do this, a very specific set of circumstances must occur:
- there must be damage to property
- in England, Wales and Scotland only ("Great Britain")
- the damage must be as a direct result of an act of Terrorism
- the act must be committed by persons connected to an organisation
- the aims of the organisation must be to influence or overthrow a government; and
- force or violence must be used.
Only when all of these circumstances occur will the Treasury sign the appropriate certificate.
The cover provided by Pool Reinsurance Company Ltd is sometimes referred to as "political terrorism" which is not entirely correct. Provided the organisation involved is seeking to influence or overthrow a government, then its motives are irrelevant and the definition of Terrorism effectively allows any motive e.g. religious, political, or ideological. More correctly, it could be said that the cover provided is for "organised" Terrorism.
If the Treasury does not certify the event as an "Act of Terrorism", there is an appeals procedure that can be invoked, involving the Treasury, Pool Re members and an independent arbiter. If the appeal fails, and the event is not certified as an "Act of Terrorism", Norwich Union policies will not class the event as Terrorism and therefore it will not fall within the policy's Terrorism exclusion.
However, the loss MAY be covered under our Property Damage and Business Interruption policies (subject to the standard policy terms, conditions and exclusions), possibly as a malicious damage loss.
Very basically, if the Treasury certifies that an event is an Act of Terrorism, then equally Norwich Union will view the event as Terrorism and it will be excluded from our policies. Only those policyholders who have purchased Pool Re Terrorism cover would be able to make claims.
If the Treasury do not certify an event as an Act of Terrorism, then Norwich Union will not view the event as Terrorism and cover may be in force under the policy subject to the standard conditions and exclusions.
