Over 70% of tenant businesses could be obliged to pay the rebuilding costs at the buildings they occupy following any terrorist damage, law firm KLegal has said.
KLegal director of property law Suzanne Gill said: "It makes no difference whether the tenant is a small private company or a large quoted plc.
"They could still have to foot the bill - which could have a disastrous effect on their business."
KLegal, associated with accountancy firm KPMG, conducted a spot check of 30 leases across the UK. It found that only 5% of companies could require their landlord to take insurance cover against "extra risks", even though tenants pay the cost of all insurance.
The firm also found that if the insurance cover was insufficient, because the landlord had under-insured, in 70% of cases tenants could be expected to make up the deficit.
It said that in 96% of cases, neither party could end the lease following damage by "other risks".
"In the UK, the government effectively acts as insurer of last resort through Pool Re," said Gill. "But this only takes effect if terrorism is covered for that building in the first place. We believe that, as a bare minimum, tenants should be able to call for terrorism insurance for the building if they are prepared to pay for it."
