In the UK , following the Baltic Exchange bomb in 1992 , all UK insurers stopped including terrorism coverage on their commercial insurance policies with effect from 1 January 1993 ( home insurance policies were unaffected ) . As a consequence , the government and insurance industry established the Pool Reinsurance Company Ltd ( Pool Re ) . Primarily funded by premiums paid by policyholders , the government guarantees the fund although any such support must be repaid from future premiums . To date , despite paying over £ 600 million in relation to thirteen separate claims , no government support has been necessary
Baltic Exchange bomb in 1992
Baltic Exchange bombing
Terrorism insurance