Keeping everyone in your nursery safe is at the heart of everything you do. Cover is in place for your property, employees and much more, but have you thought about Terrorism cover? It’s one of those risks that’s easy to overlook and yet it matters.
It might surprise you to know that standard insurance policies exclude acts of Terrorism. If the worst were to happen, you could find yourself without cover. This is where a separate Terrorism insurance comes in, giving you the peace of mind that you’re properly protected.
The rise in terrorism and the new threats emerging
The threat of Terrorism in the UK remains serious and continues to evolve. The national threat level, set by the Joint Terrorism Analysis Centre (JTAC), is currently assessed as “Substantial”. In 2025, there were 255 terrorism-related arrests, with the highest number of people in custody recorded.
In the past, Terrorism was commonly associated with major city centres and high-profile locations such as airports, concert venues and stadiums. However, the threat profile has shifted, with incidents increasingly affecting community-based settings including places of worship and venues in towns, villages and residential areas.
Terrorism isn’t always linked to religion, meaning the risk to public-facing businesses must be more broadly considered. With the current UK threat level remaining at Substantial, it is important to review how prepared your business is.
How insurance plays a role in protecting against terrorism
Insurance exists to protect you when things go wrong – your property, your income, business interruption and your ability to keep the business operational. Terrorism can create a significant gap in cover, often catching nursery owners off guard.
Standard policies exclude acts of Terrorism. This means that if the worst happens, the financial burden falls on you, including repairs, rebuilding costs and lost income.
Here’s why businesses need terrorism insurance:
- Property – If your building, equipment or resources are damaged or destroyed, standard policies will not respond to a Terrorism related event. You would bear the full cost of repair or rebuilding.
- Loss of Income – Even when damage is limited, disruption can be significant. The 2017 Borough Market attacks led to business closures and major financial losses despite minimal physical damage according to the UK Parliament. A nursery forced to close, even temporarily, loses all fee income immediately while fixed costs such as staff wages, rent and utilities continue.
- Loss of Income without damage – Businesses can now insure themselves against financial loss as a result of a Terrorist attack even if there is no physical damage to their property, covering situations where they cannot trade or are prevented from accessing their premises.
Without this cover, a police cordon that keeps you closed for days or weeks is entirely uninsured.
- Liability Risks – If children, parents or staff are injured on your premises during a terrorist attack, you may face liability claims. Without specific terrorism cover, those costs could fall to you directly.
- Lease and Mortgage Obligations – In some cases, Terrorism cover is a requirement. Without it, you may be exposed to additional financial and contractual risk.
Terrorism insurance is supported by the UK government through the Pool Reinsurance scheme (Pool Re), with legislation such as the Counter-Terrorism and Border Security Act 2019 broadening the scope of cover available.
What insurance do businesses need to protect against terrorism?
UK businesses should consider a dedicated Terrorism insurance policy to be fully covered against any Terrorism-related losses.
Standard business insurance policies won’t include Terrorism without specific add-ons, and, even then, many insurers don’t offer this type of cover at all.
Like most insurance policies, there’s no single type of cover. Instead, there are various options and add-ons you can take, including:
· Property Damage – To cover the physical damage to your stock, equipment and property.
· Business Interruption – To cover loss of income if you are unable to trade following an incident.
· Non–Damage Business Interruption – To cover enforced closure or restricted access without direct physical damage.
· Loss of Attraction – To cover if there’s a long-term drop in trade because customers start to avoid the area in the aftermath of an attack.
Double-check what types of Terrorist attacks are covered. That doesn’t just mean bombs or traditional physical attacks, but also chemical, biological, cyber, radiological and nuclear-related acts of Terrorism.
Why you need to review your insurance policies when considering the threat of Terrorism
Standard business insurance policies, including commercial property and business interruption insurance, usually exclude acts of terrorism from their cover. Moreover, if cover is included, strict limits tend to apply, with £100,000 being the most common figure.
These days, mortgage and commercial lease agreements also require specialised Terrorism insurance. So, if you’re unsure about whether you’re covered, you may be inadvertently violating the terms of your mortgage or lease.
In short, you can’t assume that your business won’t be in the vicinity of, or even the target of, a direct Terrorist attack. Reviewing your existing policies is there to protect the future of your operations and give you peace of mind.
If you are unsure of whether Terrorism insurance is included in your insurance, talk to us today… we can help you. Contact us using our online form or call us on 01204 570 390.