Insurance companies covered victims of London attacks

30.08.2005 After terrorist attacks in London left over 50 dead and 700 injured, many insurance companies decided to provide coverage regardless of their clauses on terrorism. Firms such as Axa, Prudential, Norwich Union, and Legal & General considered claims for critical illness and income protection. Even though after September 11 several policies were reviewed, normal procedures applied for most individual claims.

Many general policies do not cover damage from non-conventional terrorist attacks, however most life insurances don’t have such exclusions.
On the other hand, holiday takers had to check the small print in their travel insurance policies to see if their missed departures and other extra travel expenses were covered. For many it was not the case. However, companies such as Churchill, Endsleigh and Direct Line covered injured and disrupted holidays. They assisted their clients’ return home. 
Most car insurances (comprehensive and third person) do not have terrorism exclusions. Many motor insurance companies are processing claims for those vehicles damaged. However, rented cars usually don’t have such coverage.
Businesses were also highly affected by the attacks. Standard commercial insurance does not cover damage resulting from terrorist attacks. This benefit can be purchased as an add on. If a business has interruption coverage its claims will probably be settled. This type of protection will reimburse a business if forced to close because of damage. It will pay off the loss of income until it starts operating again. Compensation is often based on previous sales.
Although many companies have paid claims, the government is concerned because many of the victims do not have health or life insurance coverage.