FSB welcomed the Government’s announcement that it intends to update laws to help support businesses affected by shocks. In June, the Government said that it would be amending the Reinsurance (Acts of Terrorism) Act 1993 to further protect businesses in the wake of terror attacks and business traumas.
The amendment meant that the cover that is provided by the Government-backed terrorism reinsurer, Pool Re, can be extended to cover business disruption losses that are not contingent on physical damage to property.
Martin McTague, FSB Chairman, Policy and Advocacy, said: “This move is very welcome, particularly for small businesses who are all too often forgotten about after cases of business interruption, such as terror attacks, and yet are very vulnerable to disruption.
“But while the extension is welcome, it must be recognised that this is simply one among a number of steps needed in order to provide businesses with the necessary cover they require to recover in the aftermath of terrorist incidents.”
Small businesses are crucial to a local area after an attack or incident, and are vital in getting an area back on its feet.
Mr McTague added: “This amendment should be accompanied by wider action that, as a package, would help to mitigate the impact that terror attacks have on small businesses, if and when they occur.”
FSB believes this needs to include increasing awareness of terrorism insurance policies, as well as the inclusion of small firms in local resilience planning and a temporary freeze on business rates for those businesses within an area that is disrupted.