If you are a broker or individual looking to purchase terrorism insurance, you can get in touch with the team directly. We monitor our inbox regularly and one of the team will reach out to you soon.
If you have not purchased terrorism insurance before, and want to learn more about this type of insurance, our frequently asked questions may be of interest.
Terrorism insurance provides cover for losses and liabilities that occur as the result of a terrorist attack. Terrorism insurance covers:
Acts of terrorism are defined in the policy wording and typically include the following:
Since the 9/11 attacks in New York, terrorism cover is excluded or severely limited in standard commercial property insurance policies. Cover therefore needs to be purchased separately.
Whether your organisation needs to take out terrorism insurance cover can depend on the location and nature of your business. You should consider terrorism insurance if you own property or assets:
Organisations may also consider terrorism insurance if they are likely to be targeted by terrorist groups because of their business activities or ethos.
Terrorism insurance covers losses due to an act of terrorism or sabotage.
Political violence insurance can include cover for losses resulting from:
Active assailant insurance provides cover for any type of attack involving a defined weapon and intended to cause bodily harm, including terrorism.
Terrorism insurance covers terrorism and sabotage events. These events are often defined as:
Terrorism insurance can cover property damage, resulting business interruption losses and expenses due to liability claims against the policyholder or insured. Example losses include:
Full political violence insurance covers both war and terrorism. As well as civil war, coup d’état, rebellion, insurrection and revolution; strikes, riots, civil commotion (SRCC) and malicious damage; and chemical, biological, radiological and nuclear (CBRN) incidents.
Alternatively, terrorism and other political violence threats can be covered on an individual, standalone basis. Policies can protect policyholders from losses due to:
Coverage can be tailored to protect against the biggest risks affecting your organisation.
Standalone terrorism and sabotage insurance will cover the incidents defined in the policy wording. Losses due to incidents that do not fit the definition in the policy will not be covered. For example, not all policies cover non-damage business interruption, such as loss of attraction and denial of access by police cordon. However, these can be included upon request.
Terrorism insurance isn’t required by law in the UK. But as the threat of a terrorist attack persists, this is an important insurance policy for organisations to consider.
It is worth noting that commercial property insurance excludes or severely limits terrorism losses. Terrorism insurance is therefore a key part of an organisation’s risk management strategy.
It would be wise to consider terrorism insurance cover in light of the unique circumstances, location and risk factors of your business. Organisations in higher risk locations such as densely populated areas or near national infrastructure, government sites and landmarks should consider terrorism cover to protect people, assets, and business operations. Some business activities and industries may be at greater risk of being targeted. This includes being associated with partners that may be targeted.
Terrorism insurance can cover property damage losses alone. It can also include business interruption losses (including restriction or denial of access by law enforcement or damage, loss of attraction and threat or hoax events). As well as legal liability claims against the insured post-attack.
Broader political violence cover is also available, which can include terrorism and sabotage cover, as well as other events such as war, civil war, rebellion, insurrection, coup d’état, strikes, riots, civil commotion (SRCC), malicious damage, and chemical, biological, radiological and nuclear (CBRN) incidents.
Policy limits can be bought to cover the entirety of an organisation’s exposures and assets. Or based on the largest or most exposed locations.
The pricing of terrorism insurance policies considers the:
Where organisations are highly exposed to a potential attack, premiums will reflect this. This includes organisations:
Policies covering large assets with high limits of cover will require higher premiums to reflect the potential high losses.
Active assailant incidents target people, so cover is designed to provide organisations with broad support. Terrorism insurance is more focused on damage to property.
A terrorism insurance policy covers losses caused by a terrorist attack as defined in the policy wording. Active assailant insurance is “aggressor agnostic” and therefore provides cover for any incident where an attacker or group of attackers use a weapon(s) to inflict bodily harm.
This definition is much broader and therefore would also cover a terrorist attack. Active assailant insurance provides:
Businesses or organisations should take out a terrorism insurance policy if they are located or have assets located in urban, highly populated areas. They should also consider taking out a terrorism insurance policy if they are located near an important landmark or notable infrastructure site such as an airport, port or railway station.
Organisations should also consider who their neighbours are. What are their lines of business or ethos? Are they likely to be targeted? In which case you could find your premises accidentally impacted.