Borough Market traders fear insurers will reject claims after London Bridge attack costs them £1.4 MILLION
Historic market closed for 10 days after three jihadis launched terror attack on heart of the capital
BOROUGH Market traders fear insurance firms may use small print to reject their claims - after losing £1.4 MILLION in business and damage costs after the London Bridge terror attack.
Stall holders and businesses were forced to shut up shop after the terrorists' rampage left eight dead, and three weeks on many are stuck in insurance limbo waiting to discover if their providers will pay out.
London's oldest market was closed for ten days after three jihadis launched a van and knife rampage that targeted those enjoying a night out in the heart of the capital.
Managing director of Borough Market, Darren Henaghan, has revealed that many of traders' policies are expected not to cover terrorist attacks - and those that do are facing lengthy delays.
He told Sun Online: "Some policies have paid out or will, but some have not.
"We are working with Southwark Council to do a proper study to estimate what their losses are and provide advice to work with their insurers."
There's already been one tragedy in the market and we want to avoid another
Darren Henaghan, managing director at Borough Market
But Mr Henaghan warned: "The vast majority have very basic insurance."
Traders and restaurants like those in Borough Market expect to be covered under "business interruption" insurance in the event of an attack.
But crucially, insurers only payout on these policies - many of which were written during the mid-90s after IRA attacks - when there is damage to a property.
Following recent unprecedented attacks in London the insurance industry is having to now urgently review this loophole.
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Mr Henaghan added: “The insurance industry needs to talk to the government because there needs to be a change in the rules.
“I’m not criticising the industry, just that things are different now”.
"There's already been one tragedy in the market and we want to avoid another".
Julian Enoizi, CEO of Pool Reinsurance Company, which acts as a backstop for insurers, said that it became apparent following the Westminster Attack that businesses could incur significant losses through closure without physical damage to their property or those around.
He said: “The insurance industry is reacting because it’s seeing something it had not envisaged and it’s trying to ensure the gap in the cover – not an on purpose gap, a gap that has emerged – is closed as quickly as possible.”
Mr Enoizi said he did not believe that this loophole would result in claims from London Bridge traders being rejected but he confirmed that PoolRe is now working with insurers and the government to work through these changes.
The insurance industry is reacting because it’s seeing something it had not envisaged and it’s trying to ensure the gap in the cover – not an on purpose gap, a gap that has emerged – is closed as quickly as possible
Julian Enoizi, CEO of Pool Reinsurance Company
A number of insurers have confirmed to The Sun Online that they are processing claims from businesses in Borough Market but they could not go into specific details.
One said that it expects to make payments to customers, even if they didn't have cover, due to the exceptional circumstances.
Many traders and businesses in Borough with insurance are also waiting for The Treasury to classify the atrocity as "terror".
Without Chancellor Philip Hammond officially stating that it was a terrorist incident, many insurers are unable to process claims.
A Treasury spokesperson said: “Following an established legal process, we certified the Manchester and Westminster attacks as terrorist incidents for the purposes of insurance after discussions with the relevant police forces.
“We are currently in active discussions with the Metropolitan police regarding the London Bridge attack and are confident that we will be able to provide certainty to insurers shortly.”
Malcolm Tarling, from the Association of British Insurer said: “Insurers are working hard to help businesses affected by the recent attack at London Bridge and are processing claims as quickly as possible.
TRADERS RECEIVE OVERWHELMING SUPPORT FROM CUSTOMERS
Chris Stewart of Taste Coratia Deli said the response had been fantastic and it was great to see the traders pull together.
He said: "Everyone closed for 10 days. We all suffered the same, everyone lost money, but we pulled together a lot of people were here painting, refurbishing, restocking.
"There has been great customer support, lots of social media comments and all our international customers."
Jock Stark, who runs fruit and vegetable stall Jock Stark and Son, has been on the market for 50 years and said the losses to traders were nothing compared to the trauma suffered by those caught up in the attack.
He said: "The support has been very good. Last week was the first week back it was exceptional this week has been a bit quieter, which is to be expected in some respects.
"Most of the regulars have been back we don't think it has put people off.
Allyson Munro of Wyndham House butchers praised the crowds who flooded to the market in a show of solidarity following the attack.
She said: "The support has been good - local companies have been trying to make people go and buy their lunch here and buy their dinner here.
"We lost a lot of stock because we were not able to come in for a week but a lot of people have come back, a lot of regular customers have said 'we are not going to be put off by this'."
“Due to longstanding arrangements on reinsurance put in place following the 1993 Baltic Exchange bombing, terrorist attacks are reinsured through a company called Pool Re, which is backed by the Government.
“Before Pool Re can pay claims it must legally receive notification from the Government this is a terrorist attack. We understand this notification is imminent.”
A has seen more than £100,000 donated to support traders.
About £33,000 from the emergency fund, to which the Borough Market Trust donated £20,000, has already been distributed to help struggling smaller traders.
Mr Henaghan added: "We have 153 very small businesses and having a week and a half out, not being able to trade, plus the loss of stock and the emotional difficulties, it has been very difficult.
"Last week we gave out some smaller payments just to keep the cash flow going to our most vulnerable smaller traders."
SUPPORT FOR BOROUGH
News UK, which owns The Sun, is among the companies to support the market by giving each of its employees a £10 voucher to spend on Wednesday and Thursday.
Mr Henaghan said: "The fact that News UK are going to send all their staff, about 3,000 people, across with a voucher to spend - and hopefully they'll spend a little bit more - we just think that's absolutely fantastic and we are very grateful.
"News UK have provided us with a lot of other support getting our message out and supporting our long and difficult road to recovery.
"We are very grateful we think it's a fantastic, neighbourly gesture."
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