TERRORISM & POLITICAL VIOLENCE INSURANCE: WHO NEEDS THIS CRUCIAL COVERAGE?

Whether you're a power plant in Zambia, or a shopping centre in the Philippines, to a residential building in the UAE, all can be covered.

Terrorism, SRCC & Political Violence insurances is applicable to any industry type in any territory subject to clear KYC and sanctions.

The insurance primarily applies to fixed assets, addressing Property Damage and Business Interruption. Although a minor transit of goods coverage can be included with a sub-limit in the policy, it is advisable to include this type of coverage within marine policies.

People (loss of life or injury) exposure is not covered under this type of policy. There is an option to include terrorism liability within the policy, where if bodily injury or death occurs following a terrorism attack and the insured is found negligible for not having adequate security in place to prevent the loss happening then T3L (Terrorism 3rd Party Liability) would cover any legal fees/damages.

Obviously each country holds its own risk, but so do different types of occupancy. Perhaps a mining operation in DRC or a factory in Bangladesh would be more concerned about workers disuputes and rioting therefore a policy which includes SRCC would be beneficial.

Retail occupancies situated on a high street may want to consider a full political violence policy during an election year, in the event that there is any civil unrest which could escalate into a rebellion or revolution type event and cause damage to shops or restaurants.

An oil & gas company may want to consider a terrorism & sabotage policy in the event that thier may be targeted by militant groups with an explosion causing damage to the said pipeline

Side note - the above mentioned coverage types and occupancies are not exclusively related and can vary, these are just examples to get you thinking

It is important for risk managers to also consider that their insured assets may not be a primary target for a PVT (Political Violence & Terrorism) loss, but it maybe a secondary (even tertiary). target or the potential for collateral damage if there is an event that occurs nearby. Have a think about what occupancies are nearby, do you perceive any high risk targets within a close radius? Having some form of cover in place maybe the difference between a positive or negative balance sheet at the end of the financial year.

Hopefully some of the above is of use to you, if you have any queires or need further advice, please feel free to reach out.

Remember to take a look at our other atricles on this site, to help you get a better understanding of this insurance product

Stay resilient

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