Tories “missing” as Labour MP demands support for businesses after terror attack

The Labour MP whose constituency covers London Bridge and Borough Market has accused the Tories of going “missing” as businesses seek help to get back on their feet after the terrorist attack.

Neil Coyle, MP for Bermondsey and Old Southwark, said the “government is yet to provide support, other than to prod insurance providers” despite a visit by Theresa May.

He also criticised the “wholly unacceptable” delays of some insurers which, he said, have put local firms at risk of closing down.

Eight people were killed and 48 injured in the June 3 atrocity.

Coyle used a LabourList piece to warn that some businesses fear liquidation “if adequate help is not forthcoming.”

“Some payments have now trickled through but the pace is unbearably slow,” Coyle adds.

“After two months of dither and delay, it is clear that the whole system requires an overhaul to reflect how terrorists attack now. I will keep working for the employees and businesses affected and will press the government to do more. The people whose lives and livelihoods were so adversely effected by the attack simply cannot wait another two months for the assistance that they urgently need.”

When contacted by LabourList the Home Office referred criticisms to Southwark council. The local authority and Pool Re, which provides insurance cover against acts of terrorism, have been approached for a comment.

A spokesperson for the ABI (association of British insurers) said: “Insurers have been working hard to help business customers affected by the recent attack at London Bridge, processing claims as quickly as possible, including making interim payments where needed.

“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 ultimately backed by the government. We are keen that the reinsurance cover provided by Pool Re is adapted to reflect the changing nature of terrorist attacks, including where businesses are disrupted but extensive damage to property may not always occur. This would then allow insurers to offer businesses wider cover for the disruption they may face from these types of attacks.”

Pool Re said in a statement: “Pool Re identified the gap in terrorism insurance cover after the events in continental Europe last year. As a result, it has designed a solution and is working closely with Government so that the gap in insurance cover that relates to business interruption occurring after a terrorism event but which is not consequent on damage to property, is closed. That solution will involve private market capital and will ensure that businesses can access insurance to protect themselves against today’s terrorism threat which is no longer solely focused on the destruction of property. Pool Re is also taking steps to ensure that terrorism insurance products are affordable and fairly priced for small enterprises a well as businesses outside of major urban centres, particularly where there is an issue of interdependence (where they might not necessarily be a target themselves but are located to a site that might be).”