The UK’s terrorism pool has been criticised for failing to provide business interruption (BI) cover when there is no property damage.

Brokers expressed concern about a possible gap in coverage following recent attacks such as the Charlie Hebdo killings in Paris.

The pool covers business interruption, but only if there is a property damage trigger. Companies could be exposed if a terrorism incident shut down a city centre.

Pool Re CEO Julian Enoizi says while the pool constantly reviews reinsurance protection, it is unlikely cover would be adjusted in this instance.

“BI insurance is a dynamic market and to reflect the evolving terrorist threat, BI cover where there is no property damage is currently available to insureds across the UK through the insurance market.

“The scope of Pool Re cover is designed to address those areas where the market is unable to fulfil the needs of the market, and most BI losses flowing from interruptions of a few days would not seem to require the intervention of a market pool.”

Australian Reinsurance Pool Corporation CEO Christopher Wallace told insuranceNEWS.com.au that as a reinsurer it only responds to the cover the insured has in place.

“Most business interruption policies require property damage, although you can purchase extra cover,” he said.

“In our scheme if the policyholder has the extra cover then we would cover it, but most people don’t.”