4 Terrorism Insurance Cover

Sep 10, 15 4 Terrorism Insurance Cover

With the raise of mass terrorist global events ever since the terrible events of September  11, 2001; many business and property owners have seen the need to cover their property against loss through terrorism. As we can see, maybe this type of insurance wouldn’t cross most people’s minds, but it is actually becoming increasingly popular all over the world.

People are becoming more and more scared of losing their health, lives or property due to some form of terror attack and the market for this started emerging. This fear people have has prompted the insurance fraternity to devise a cover for this market need. However this is a tricky cover given that the chances of their occurrence are very low while they have huge potential losses.

We all know how important it is to have good insurance coverage. Most people have basic home, business or personal insurance which covers domestic and business injuries. Most injuries happen at home or in the workplace and are a result of falls or improper handling of tools such as framing nailers, or tools that malfunction (a good way to prevent this is to learn how to handle tools with care and, for example, look at a good framing nailer review site before making a purchase).

But, terrorism insurance is an important insurance cover especially to regions most exposed to terrorism activities. In fact it is the only way for any business to protect itself from losses arising from terrorism activities. In regions most vulnerable to attacks and violent extremism such as Africa, insurance companies have tailored the terrorism cover into various marketable insurance cover which benefit both the insurer and the insured.  But don’t think that this market exists in developing countries only – it is also very prominent in the US. Some of the available insurance covers in the most insurance markets are:

  • Property Terrorism and Sabotage cover
  • Political Violence property cover

However the main challenge facing these covers is the potential massive losses expected from the occurrence of these loses coupled with inadequate accumulation control. This makes most insurance companies to turn to overseas re-insurance, since the locally available re-insurers don’t have the capacity to cover them.

Insurance policies will compensate or have already compensated owners of the several businesses for property damage and business Interruption. It is therefore important to be safe rather than sorry by having your business covered against terrorism-related loss. For business  situated in regions susceptible to terror attacks, this cover is more of an essential than a luxury and everyone would be well advised to have their property covered.

On the part of the insurers, it is important to have the available terrorism covers to be tailored to suit everybody and cover broad geographic and financial spectrums.

All in all, the terrorism insurance is the next best thing after anti-terrorism measures; since not everybody can contribute in fighting extremist terror activities they can be prepared to combat the property losses arising from terrorism activities, by being covered against losses from terrorism events.