Terrorism Insurance

100% underwritten by certain underwriters at Lloyd's.

What is Terrorism Insurance?

Terrorism insurance coverage can protect a business from losses related to terrorism and sabotage incidents. Terrorism insurance may also be called terrorism events insurance, since a qualifying terrorism event is a necessary to trigger coverage.

Terrorism coverage insurance can be a great option for businesses that are concerned about their ability to survive economic devastation due to a terrorism incident.

Acts of terrorism insurance is similar to political violence insurance (political violence risk insurance) or war and terrorism insurance.

While worldwide terrorism insurance is typically not available due to sanction zones interruptions, WealthGuard terrorism insurance is available in many global locations, and can be written to cover multiple sites.

The terrorism coverage insurance definition may vary according to the policy and plan.

What Does Terrorism Insurance Cover?

Terrorism insurance coverage can be customized according to the specific needs of a business. The WealthGuard Terrorism Insurance program offers add-on coverage options such as nuclear, chemical, biological, and radiological events. Terrorism liability insurance can also be included, with $50 million total capacity per location and higher limits available.

Terrorism insurance can include both a property and liability component. Terrorism insurance coverage for commercial property is an important aspect of the terrorism policy, since regular commercial property coverage typically does not cover damages to property due to acts of terror.

What is T R I A or TRIA?

TRIA refers to the Terrorism Risk Insurance Act (TRIA), which was made federal law in the USA under President Bush in 2002. The Terrorism Risk Insurance Act guaranteed federal backing for insurance coverage up to certain limits - with a qualifying event requirement needing to meet or exceed $5 million in damages.

TRIA insurance is guaranteed for domestic United States companies; however, the terms of this insurance are more limited than standalone terrorism insurance. TRIA insurance coverage is geographically limited to the United States, and does not cover losses due to war, political violence or civil disruption.

Private terrorism insurance, on the other hand, can be written to cover various locations throughout the world (with certain exceptions and attention to sanction zones).

What is TRIA Insurance?

The Terrorism Risk Insurance Act (TRIA) was later extended as the Terrorism Risk Insurance Program Reauthorization Act (TRIPRA) in 2019. The terms of TRIPRA are set to expire in 2027.

TRIA coverage, while guaranteed by the US government, offers some federal protection to US citizens who experience loss due to terrorism. As stated above, the insurance tria offers is geographically limited to the United States, and do not cover losses due to war, political violence or civil disruption.

Standalone Terrorism and Sabotage policies allow for additional coverage specifications beyond the scope and geography limitations of TRIA.

Why do you need a separate terrorism insurance policy?

It is important to recognize that strike, riot and civil commotion insurance are not the same as terrorism insurance. If a business sustains damage to property due to terrorism-related causes, it is unlikely that the damages will be covered under a typical commercial property policy.

The malicious damage insurance definition is used to specify coverage terms under some policies. For example, some insurance policies will include coverage for malicious damage (vandalism, for example), while other policies may omit coverage for these types of causes. The malicious damage definition insurance policies offer may be similar, but not the same, as the qualifying definition of an act of terrorism or sabotage. A policy that covers malicious damage may offer insufficient coverage for terrorism or sabotage related incidents.

FAQs

Are riots covered by insurance / Does business insurance cover riots?

"Does insurance cover rioting" is a common question. Riot and civil commotion insurance may be included in some commercial property coverages, but not all. Riots and civil commotion are not the same as acts of terrorism or sabotage. If you are wondering "Are riots covered by business insurance," the best answer is to review your insurance policy in further detail and discuss with your agent or broker for clarification.

What is tria coverage?

TRIA coverage is insurance automatically available to US domestic businesses through the federal Terrorism Risk Insurance Act (TRIA). TRIA requires a certified terrorist event to exceed $5 million before qualifying coverage.