Terrorism—risk and insurance for construction projects
Produced in partnership with Fladgate

The following Construction practice note produced in partnership with Fladgate provides comprehensive and up to date legal information covering:

  • Terrorism—risk and insurance for construction projects
  • What is terrorism?
  • Who bears the risk of terrorism?
  • What is Pool Re?
  • What does Pool Re cover?
  • How can the parties obtain insurance cover?
  • What are the JCT provisions in respect of terrorism?

Terrorism—risk and insurance for construction projects

What is terrorism?

The Reinsurance (Acts of Terrorism) Act 1993 (R(AT)A 1993) defined terrorism as:

'acts of persons acting on behalf of, or in connection with, any organisation which carries out activities directed towards the overthrowing or influencing, by force or violence, of Her Majesty’s Government in the United Kingdom or any other government de jure or de facto' (section 2(2)).

Terrorism was redefined in the Terrorism Act 2000 (TA 2000) (as amended by the Terrorism Act 2006 (TA 2006) and the Counter-Terrorism Act 2008 (CTA 2008)). Terrorism means any of the following actions:

  1. (a) involving serious violence against a person

  2. (b) involving serious damage to property

  3. (c) endangering a person’s life (other than that of the terrorist)

  4. (d) creating a risk to the health or safety of the public, or

  5. (e) designed seriously to interfere with or disrupt an electronic system

The motive for the actions is:

  1. designed to influence the government, or international government organisation or to intimidate the public or a section of the public

  2. for the purpose of advancing a political, religious, racial or ideological cause

The definition of terrorism in the 2000 Act, (as amended), is much wider than the definition of terrorism in the 1993 Act. The 1993

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