Castle Rock Insurance Agency

Terrorism Insurance Facts

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Thursday, September 22, 2016

Prior to the attacks on September 11th, 2011, terrorism wasn't really a concern for many insurers and Terrorism Insurance wasn't a widely available product. In fact, terrorist attacks weren't even excluded on property and casualty policies for business owners and landlords. However, the events in St. Cloud, Minnesota, New Jersey and the New York City area during the week of September 19th, 2016, have reminded business owners that such instances shouldn't be taken for granted, with regards to their insurance.

Terrorism insurance has evolved into a necessary business expense for organizations ranging from Fortune 500 conglomerates to local variety stores. People are becoming more and more curious about such coverage, too.

Terrorism insurance policies can provide coverage for loss of income, damage to property, loss of income due to terrorist threats, defense costs brought on by 3rd parties for bodily injury and even coverage if an attack occurred off premises.

 


How Does Terrorism Insurance Work?

 

Companies can choose from a variety of terrorism insurance policies.

One of them kicks in if the American government officially states that a terrorism act transpired under the TRIA (Terrorism Risk Insurance Act), which was passed after 9/11. In addition, TRIA requires that the event MUST cause at least $ 5 million for a loss to be considered as "certifiable". The other type of policy is a standalone terrorism insurance policy that will not require government certification to pay a claim. Standalone terrorism insurance policies are far superior to the "TRIA" option.

Who are the ones buying these policies?

Businesses of all sizes are buying these policies but majority are real estate firms based in San Francisco, New York, and Washington, D.C., along with educational and financial institutions, and other top-level industries. Small businesses, especially ones near prominent targets, also purchase the coverage.  

Which companies are selling the most Terrorism Insurance Policies?

There are several carriers that offer terrorism insurance policies that do not need to be certified by the government. All carriers with offering options are A rated by A.M. Best.

What is covered by Terrorism Insurance?

 

There is a variety of coverage that can be purchased such as loss of income, loss of rents for landlords, damage to property of any kind, loss of income due to terrorist "threats", defense costs brought on by 3rd parties for bodily injury and even coverage if an attack occurred off premises.

What is not covered by Terrorism Insurance?

 

Usually, third party liability coverage due to biological, nuclear, radiological (NBCR), and chemical attacks, however first party property damage due to these perils can be covered,

 
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