Terrorism Insurance – Cover Overview

Terrorism is not new, but the frequency, audacity, and geographical reach of terrorist attacks have noticeably increased in recent years. Understandably, business owners, risk managers and insurers are concerned with mitigating the risks posed by increasingly prevalent, damaging and random attacks.


Because losses, costs, damages and expenses from terrorism are typically excluded from standard commercial insurance policies, cover must either be added on as an extension or purchased as a stand-alone policy. By adding terrorism cover to your policies, you can protect your business from this ever-growing set of hazards.

What is terrorism?

The complexity of terrorism insurance usually arises from the discrepancy between the actual definitions of terrorism. In the United Kingdom, both the Reinsurance (Acts of Terrorism) Act 1993 and the Terrorism Act 2000 have their own statutory definitions of terrorism.


Different insurers also have their own definition, which can lead to confusion and gaps in cover. As a result some insures offer terrorism “gap” cover.


If you would like to know more about this subject download our Cover Overview or contact your broker.


To access the governments advice on terrorism and national emergencies visit gov.uk

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