War, Political Violence and Terrorism Insurance

As the threat from terrorist groups becomes ever-more sophisticated, so the sabotage, terrorism and political violence insurance market has needed to evolve and expand to help meet the increasingly complex requirements of those seeking cover.

Insured Events

An Insured may own a portfolio of property located in different countries and may consider that their policy needs to be tailored to suit the localised threat.  The range of insured events includes, but is not limited to, the following:
•    Act(s) of terrorism
•    Sabotage
•    Riots
•    Strikes
•    Civil Commotion
•    Malicious Damage
•    Insurrection, Revolution, Rebellion
•    Mutiny, Coup d’Etat
•    War (excluding those between USA, UK, France, Russian Federation, Peoples’ Republic of China)
•    Civil war

Scope of Cover

In addition to the repair or reinstatement of property following an Insured Event, cover can also be expanded to include:
•    Business interruption
•    Contingent business interruption
•    Loss of revenue/loss of profit
•    Loss of rental income
•    Increased cost of working

Government Pools

Government pools or programmes, whilst generally being cost-effective, do have limitations.  For example TRIPRA (USA) does not provide cover for assets domiciled outside the USA and Pool RE (UK) is not designed to cover ideological acts of terrorism such as animal rights activists.
Paragon specialises in the placement of Difference in Conditions (DIC) or Difference in Limits (DIL) insurance solutions designed to complement and augment existing policies underwritten wholly or in part through government programmes.

Terrorism Liability Coverage

Many public liability policies either exclude or contain sub-limits for liability following an act of terrorism, sabotage or political violence.  Companies whose business involves a high throughput of people (events/conference centres, shopping centres, hotels etc) are particularly susceptible to post-event litigation.

Coverage can be arranged as employer’s liability and/or third party liability tailored to cover any of the following:
•    Bodily injury (both 1st and 3rd party)
•    Property damage
•    Pollution clean-up
•    Defence costs

Nuclear, Chemical, Biological and Radiological (NCBR) Acts of Terrorism

NCBR, whilst being excluded from ‘standard’ Terrorism policies, can still be purchased as a stand-alone product from a limited panel of insurers who offer this type of cover.

All lines of property and casualty including workers’ compensation can be covered, examples of Insured Events are:
•    Nuclear explosion
•    Chemical release into a water system
•    Biological release through aerosol
•    Radiological release into the atmosphere