Martyn’s Law: When remembrance meets the market

The Terrorism (Protection of Premises) Act 2025 (the Act, also known as Martyn’s Law), has received Royal Assent and will come into force in April 2027. It is named to commemorate Martyn Hett, one of the 22 people tragically killed in the Manchester Arena attack in 2017.

Martyn’s Law marks a step-change in the protections that large venues must take to, respond to, and reduce their potential vulnerability to terrorist attacks.

The Act is likely to impact a wide range of properties and spaces, such as shopping centres, supermarkets, hotels, pubs, cafes, restaurants, theatres, conference centres and sports venues. 

Key features of Martyn’s law

The Security Industry Authority (SIA) to have responsibility for overseeing compliance with the Act.

Standard Duty: Premises where between 200 and 799 people are expected to attend must:

• notify the SIA of their premises, and
• implement “reasonably practicable” public protection procedures regarding a response to a terrorist attack on or near the premises, such as evacuation, invacuation, locking down premises, communication with individuals in the premises etc.

Enhanced Duty: Premises and events where 800 or more people are expected to attend must:

• comply with the requirements under the Standard Duty,
• appoint a senior individual with responsibility for ensuring compliance with the Standard and Enhanced Duties,
• implement procedures regarding (a) their response to a terrorist attack on or near the premises, and (b) limiting their vulnerability to such an attack, such as controlling and monitoring movement of people in and around the premises, CCTV, searching, screening, locks, barriers, stand-off zones, safety glass, bollards etc.,
• provide these procedures, and an accompanying assessment of the risks at the premises/event, to the SIA.

There are exemptions under Schedule 2 of the Act for a limited number of venues including non-commercial parks and gardens, and communal sports grounds.

What does Martyn’s Law mean for insurers and their policyholders?

Although this two-tiered duty will not come into effect until April 2027, venue operators and the insurance market will need to be prepared long before this. 

Any property open to the public could potentially be caught by Martyn’s Law and so it’s important that businesses and their brokers evaluate their operations and portfolios to understand whether premises falls within one of the tiers or is otherwise excluded or exempt.

For insurers, increased risk may come where policyholders are required by the SIA to undertake physical alterations to existing venues.

Assess property for current counter-terrorism measures

Policyholders and brokers to evaluate current security measures and assess potential costs of implementing and upgrading new security measures such as access controls, CCTV, barriers etc.

Cover for fines

Although the exact scope of the fines that can/will be levelled by the SIA is unknown at this point, one can expect the SIA to stamp its authority once the implementation period elapses.

The SIA will have powers to issue notices requiring compliance or imposing restrictions on relevant premises and events.  

For Enhanced Duty holders, non-compliance penalties can be severe such as fines up to £18m or 5% of worldwide revenue, whichever is higher. 

Failing to comply with a compliance or restriction notice is a criminal offence and can lead to imprisonment and/or an unlimited fine.

This will likely trigger an increase in policyholders seeking cover for such fines, subject to insurability at law, and the limits of such cover. However, issues remain under English law with the insurability of fines and penalties due to the doctrine Ex Turpi Causa. 

Physical works and alterations to properties

A possible risk to property insurers is where larger commercial properties and venues are required by the SIA to undertake physical alterations to their existing structures in order to minimise terrorist attacks, which may give rise to claims under contract works policies or property policies.