Terrorism Insurance for UK property and businesses
Fills the gap left by the terrorism exclusion on most commercial property policies, covering buildings, contents and lost income after an attack. A specialist broker can compare scheme backed and standalone cover for landlords, retailers, venues and multi-site firms.
- Damage to buildings, contents and stock from an attack
- Lost income, including when police cordons close your site
- Options for venues, city centre sites and property portfolios
Reviewed October 2026 by the MyBusinessComparison.com editorial team
What is terrorism insurance?
Terrorism insurance covers physical damage to commercial property, and the business interruption that follows, when the cause is a terrorist attack. Most commercial property policies in Great Britain exclude terrorism, so businesses that need the cover add it as an extra section or buy a separate policy.
There are two main routes. Many property insurers can add terrorism cover backed by Pool Re, the government backed reinsurance scheme for Great Britain, which applies to all the British locations on your policy. Alternatively, specialist insurers write standalone terrorism and political violence policies that can be tailored to particular sites and risks.
Landlords, lenders and investors frequently make terrorism cover part of the terms of a lease, loan or purchase, so many property owners hold it whether or not they see themselves as a likely target.
Terrorism cover at a glance
- Covers
- Damage to buildings, contents and stock, and lost gross profit
- Why buy it
- Most commercial property policies exclude terrorism
- Main routes
- Scheme backed cover added to your property policy, or a standalone policy
- Area
- Scheme cover applies in Great Britain; Northern Ireland is handled differently
- Often required by
- Lenders, landlords, investors and tenants
- Priced on
- Location, sums insured, type of property and the cover chosen
What does terrorism insurance cover?
Cover mirrors your property and interruption sections, with extra options for risks specific to terrorism. Which ones you get depends on the route you choose.
Buildings
Blast, fire and structural damage to property you own or must insure under a lease, plus the cost of making the site safe.
Read more about commercial property insurance
Contents and stock
Fixtures, machinery, equipment and stock destroyed or damaged in an attack.
Business interruption
Profit lost and extra spending needed to keep trading while premises damaged in an attack are put right, usually matching the indemnity period on your main policy.
Read more about business interruption insurance
Denial of access
Income lost when police cordons or closures after an attack nearby stop customers or staff reaching your site, even without damage to it.
Rent receivable
Rent lost by landlords while tenants cannot use damaged or cordoned units.
Read more about commercial landlord insurance
Chemical, biological and nuclear
Contamination and damage from these forms of attack, which scheme backed cover includes but many standalone policies leave out.
Cyber terrorism causing damage
Physical damage caused by a terrorist cyber attack on systems that control buildings or plant, under scheme backed cover.
Attacks on crowded places
Standalone options covering interruption and extra costs after an armed or vehicle attack at or near a venue, even where property is not damaged.
Read more about leisure business insurance
Threat and loss of attraction
Standalone options for income lost after a credible threat, an evacuation, or an attack that keeps visitors away from an area.
Cover that sits next to terrorism insurance
- Commercial combined: the main policy terrorism cover is usually added to
- Cyber insurance: for hacking and ransomware with no physical damage, which terrorism cover excludes
- Event and contingency: for cancellation of a show or conference after an attack or threat
- Group personal accident: for benefits to employees injured in an attack
Who needs terrorism insurance?
Risk is highest in city centres and crowded places, but cover is often driven by contracts and lenders as much as by location.
Insuring a portfolio? Terrorism is usually arranged across every building on the schedule. See property portfolio insurance.
- Commercial landlords: leases commonly require the landlord to insure against terrorism and recover the premium from tenants
- Property investors and portfolio owners: lenders often make terrorism cover a condition of the loan
- Property developers: for completed buildings and, alongside contractors' all risks, works in progress in town and city centres
- Retailers: shops in high streets, shopping centres and transport hubs where crowds gather
- Hotels and hospitality groups: city centre hotels, bars and restaurants with guests on site day and night
- Venues and attractions: stadiums, theatres, arenas and attractions drawing large crowds
- Office occupiers: head offices and professional firms in central business districts
- Warehouse and logistics operators: high value distribution centres and stock near ports and infrastructure
- Manufacturers: sites storing hazardous materials or close to likely targets
- Healthcare providers: private hospitals and clinics in urban locations
How much does terrorism insurance cost?
Premiums are mainly driven by where your property is and how much is insured. These are the details that drive the rate.
Location
Scheme backed rates vary by area, with central London and major city centres rated higher than smaller towns and rural sites.
Sums insured
Rebuild values, contents, stock and gross profit all feed directly into the premium.
Type of property
Iconic buildings, crowded venues and sites next to likely targets are viewed as higher risk.
Route chosen
Scheme backed cover must include all British locations on the policy, while a standalone policy can be priced site by site.
Extra options
Denial of access, loss of attraction, threat and crowded place cover each add premium.
Security measures
On standalone policies, physical security, crowd management and response plans can be taken into account.
What terrorism insurance does not cover
Terrorism cover has its own exclusions, and they differ between scheme backed and standalone policies.
- War, invasion and civil war, which are excluded from scheme backed cover and most standalone policies
- Digital attacks that disrupt systems without physical damage, which fall to cyber insurance
- Riot and malicious damage, which are normally insured under the main property policy instead
- Property in Northern Ireland under scheme backed cover, where a separate arrangement applies
- Chemical, biological and nuclear attacks on many standalone policies
- Liability for injury to the public, which needs separate terrorism liability or public liability cover
- Under scheme backed cover, incidents the government has not certified as terrorism
Scheme backed or standalone terrorism insurance?
Most businesses choose between these two routes. Some combine them.
| Feature | Scheme backed cover | Standalone terrorism policy |
|---|---|---|
| How it is bought | Added to your property policy by your insurer | A separate policy from the specialist market |
| Which sites | All British locations on the policy | Selected sites can be chosen |
| Chemical, biological and nuclear | Included | Often excluded |
| What triggers it | Government certification of terrorism | The definition in the policy |
| Extra options | Some denial of access cover, depending on the insurer | Threat, loss of attraction and crowded place cover |
| Territory | England, Scotland and Wales | Can include Northern Ireland and overseas sites |
How to arrange terrorism insurance
Start from your property schedule. Terrorism cover follows the same sites and values.
Check your current policy
Confirm whether terrorism is excluded, and whether any lease or loan agreement says you must insure it.
List every location
Include addresses and postcodes for each site, as location drives the rate and scheme cover applies across them all.
Confirm values and income
Use the same rebuild values, contents, stock and gross profit as your main property and interruption cover.
Decide on extras
Consider denial of access, threat and crowded place cover, particularly for venues and city centre premises.
Compare both routes
Ask the broker to set scheme backed and standalone options side by side, including cover for chemical and nuclear attacks.
Talk to a specialist broker
Tell us where your properties are and what they are worth and a broker will price the cover for you.
Get a quoteTerrorism insurance FAQs
How much does terrorism insurance cost?
The price depends mainly on where your properties are, how much they are insured for and which route and options you choose. City centre premises cost more to insure than out of town sites. A broker can compare scheme backed and standalone prices for your schedule.
Does my commercial property insurance cover terrorism?
Probably not. Most commercial property and commercial combined policies in Great Britain exclude terrorism, although some include a small amount of cover. Your schedule will say whether terrorism is covered and, if so, up to what limit.
Is terrorism insurance compulsory?
Not as a general rule, but it is often a condition of a lease, a mortgage or an investment. Many commercial leases oblige the landlord to insure against terrorism, and lenders frequently require it on property they lend against.
What is Pool Re?
Pool Re is a reinsurer backed by the government that supports terrorism cover for commercial property in Great Britain. Insurers that are members of the scheme can offer terrorism cover alongside their property policies, with the scheme taking on large losses.
Can I insure just one high risk site?
Not under scheme backed cover, which normally has to include all your British locations on the same policy. A standalone terrorism policy can cover selected sites, which can suit firms with one exposed location.
Does terrorism insurance cover lost income without damage?
Sometimes. Many policies cover interruption when police cordons stop access to undamaged premises, and standalone options can cover loss of attraction or threats. Check exactly which events trigger the interruption cover.
Are tenants covered under the landlord's terrorism insurance?
The landlord's policy covers the building and the rent. Tenants still need their own cover for contents, stock and lost profit, and it is worth asking whether terrorism can be added to those sections.
Is Northern Ireland property covered?
Scheme backed cover applies only in England, Scotland and Wales. Northern Ireland property is handled under a separate arrangement, and standalone policies can include it. Ask the broker about the right approach for your sites there.
How do I get a terrorism insurance quote?
Send your details from this page and a specialist broker will be in contact to review them. Your property schedule with addresses, values and gross profit, plus any lease or loan terms that call for terrorism cover, is what they will ask for first.
Close the terrorism gap in your property cover
Have scheme backed and standalone terrorism insurance compared side by side by a specialist broker.