Travel insurer Club Direct has done an about-turn over its policy of refusing to cover people caught up in terrorist attacks in Spain.
Following a report in Insurance Times, the company has extended its medical cover to include people caught up in terrorist incidents.
Basque separatist group ETA has been waging a bombing campaign in Spanish tourist resorts since March.
Last week, 13 people were injured when a bomb went off in the popular northeastern resort of Salou, near Tarragona.
Club Direct managing director Brent Escott said: “Costs can range from a few thousand pounds for a minor injury to over a million for protracted medical treatment and repatriation.”
Until this week, Club Direct was excluding terrorist incidents from all its policies.