Despite the efforts of security forces, recent events around the world, such as those in Las Vegas, Nice, Florida, London, Japan, Sydney, and Jakarta, have demonstrated that terrorism can impact innocent people anywhere. Terrorist acts are no longer solely carried out by specific political or religious groups; today, they often involve simpler, makeshift methods using knives, trucks, or vans as much as guns or bombs.
How to Manage Terrorism Risk
While the risk of terrorism itself cannot be transferred, its financial impacts—such as property damage, loss of income, bodily injury or death, reputational damage, and loss of key personnel—can be managed through insurance. Engaging an experienced broker ensures you get the right coverage when you need it most. Terrorism coverage may not be included in your standard insurance policies, so it is important to align your risk management with appropriate insurance solutions.
What Does Terrorism Insurance Cover?
Terrorism insurance offers coverage for damage to insured property and loss of income following a terrorist event, with extensions depending on factors like the motivations and affiliations of the assailants.
Types of Terrorism Insurance Policies
Terrorism Insurance: Covers loss or damage to property and subsequent loss of income due to acts of terrorism or sabotage.
Political Violence Insurance: Similar to terrorism insurance, with added protection against riots, strikes, civil commotion, malicious damage, insurrection, rebellion, mutiny, coups, war, and counter-insurgency.
Active Assailant Insurance: Designed for attacks that primarily cause bodily injury rather than property damage, covering loss of income and related costs such as public relations, relocation, medical expenses, and additional security.
Additional Insurance Types Related to Terrorism:
- Loss of Attraction: Business interruption coverage if a terrorist event affects a defined region.
- Kidnap & Ransom: Access to an expert crisis response team for kidnapping situations.
- Crisis Response Insurance: Provides support during crises like natural disasters and political unrest.
Using a knowledgeable broker can help you find a comprehensive policy tailored to your unique needs at a competitive price.
