Borough Market traders fear insurers will reject claims after London Bridge attack costs them £1.4 MILLION

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.

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.