There have been a number of high-profile terrorist attacks
around Europe in recent years and the UK has been the victim of
several of these events, which have included the Manchester, London
Bridge and Westminster attacks. They typically target innocent
bystanders and are seemingly designed to terrorise the public. But
they can also incidentally harm businesses. Will their insurance
respond? Here, it is useful to set out some history.
The IRA had been carrying out a bombing campaign in Northern
Ireland and on the UK mainland since the 1970s, usually targeting
people. But in 1992 it adopted a new tactic when a huge bomb
exploded outside the Baltic Exchange in the City of London, causing
massive property damage. This raised questions as to whether
property insurers would simply exclude terrorism from their
policies – a development which might have forced some
businesses out of London.
