Introducing the AFB 1–8 Policy: A Market Standard for Political Violence Coverage

In this five-part Resilient Frontiers series, we’re breaking down one of the industry’s most widely used frameworks: the AFB 1–8 political violence wording. This market-standard policy form outlines eight distinct perils — from terrorism to civil war — and helps bridge the protection gap left by property policies and terrorism-only extensions.

Think terrorism insurance is enough? Think again. AFB 1–8 goes further — and we’ll show you how.

Are There Other Wordings? Yes — But This Is Our Focus

There are alternative political violence wordings available in the market — including Hiscox 1–5, Axis, and other bespoke forms — which offer similar structures and definitions. But for clarity, consistency, and market familiarity, we’ll be using AFB 1–8 as our reference point in this educational series.

What Political Violence Insurance Covers: The 8 Core Perils

Here’s what’s typically insurable under an AFB 1–8 policy — assuming the insured has elected to include them:

1. Act of Terrorism

2. Sabotage

3. Riots, Strikes and/or Civil Commotion (SRCC)

4. Malicious Damage

5. Insurrection, Revolution or Rebellion

6. Mutiny and/or Coup d’État

7. War and/or Civil War

8. Counter-Insurgency

In Part 2 of this series, we’ll unpack each peril with definitions, real-world examples, and common misunderstandings. But for now, here’s what makes AFB 1–8 so essential.

Is your business covered for evolving risks?

Why PV Insurance Isn’t Just for War Zones

It’s a common myth that political violence only affects unstable countries. But over the last few years, we’ve seen:

• Cross-border tension between Pakistan and India affecting investment flows

• Widespread looting and arson during South Africa’s July 2021 riots

• The Beirut port explosion and subsequent Israeli airstrikes on southern Lebanon

• Military coups in Sudan, Niger, and Myanmar

• Protest-led infrastructure damage in Chile and Nigeria

These aren’t edge cases. They’re reminders that PV risk is dynamic, global, and often underinsured.

What an AFB 1–8 Policy Typically Covers

✅ Physical damage to buildings and contents

✅ Debris removal following a covered event

✅ Damage from government suppression of terrorism/sabotage

✅ Business interruption losses (if endorsed)

✅ Damage to property the insured owns or is legally responsible for

What’s Not Covered (And Often Misunderstood)

❌ Theft or looting (unless triggered by a covered peril)

❌ Cyber incidents (unless a mobile phone is used to detonate a device)

❌ Regulatory confiscation or expropriation

❌ War between nuclear powers (e.g., U.S., China, Russia)

❌ Loss of market, denied access, or economic loss without physical damage

PV Insurance vs. Terrorism Cover vs. SRCC: What’s the Difference?

Policy Type	Trigger Events	Typical Use Case
Terrorism Insurance	Acts of politically/religiously motivated violence	Often mandated for property in major cities or government sites
SRCC Cover	Civil unrest, strikes, labor riots	Often added to property policies, but may be excluded in high-risk markets
AFB 1–8 PV Insurance	Full spectrum of political violence (1–8 perils)	Essential in fragile, contested, or fast-moving political environments

✅ Why Political Violence Insurance Should Be on Every Risk Manager’s Radar

Political violence isn’t just a problem for companies in conflict zones — it’s a global business reality. The events that trigger claims under political violence insurance are often unpredictable, fast-moving, and escalate quickly from protest to property damage.

Whether your business operates in a high-profile sector or not, you don’t need to be a target to be affected.

Riots, coups, sabotage, and civil unrest can create collateral damage, disrupt operations, and impact businesses of every size and sector — often without warning.

That’s why political violence insurance isn’t just a tactical purchase — it’s a strategic tool. AFB 1–8 policies give organizations a structured way to:

• Protect critical assets

• Maintain business continuity in crisis

• Reassure boards, investors, and regulators

• Navigate unpredictable geopolitical landscapes with confidence

In today’s risk environment, insuring against political violence isn’t a luxury — it’s preparedness.

🔜 Coming Next: Understanding the 8 Perils (Part 2)

We’ll walk through each of the AFB 1–8 perils with real-world context, practical tips, and clarification around what triggers a valid claim — and what doesn’t.

💡 Resilience Starts with Understanding.

Don’t let volatility catch your business off guard. Subscribe to our updates, follow Resilient Frontiers, and join us as we unpack what it really means to insure against political violence in today’s world.

👉 Got a question about your current PV policy? Message us — we’ll help translate the fine print.

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