Terrorism Insurance


Terrorism insurance is insurance purchased by property owners to cover their potential losses and liabilities that might occur due to terrorist activities. Terrorism coverage is provided as an additional cover to all risks underwritten under fire, engineering, and property damage. Terror insurance comes as an inbuilt cover for personal accident policies, and most health and life insurance policies though some.

Terrorism coverage is a public/private risk-sharing partnership that allows the federal government and the insurance industry to share losses in the event of a major terrorist attack

Need for Terrorism Cover

Besides the tragic loss of human life, the economic costs of terrorism are immense: increased security and anti-terrorist expenditures, consumer and investor uncertainty, supply chain and business continuity disruptions, industry retrenchment – all and more can have negative impacts on economic growth.

Terrorist attacks are also a major threat to the insurance industry, posing the possibility of significant loss of life, injury, and property destruction. And terror attacks involving chemical, biological, or cyber weapons could reach catastrophic proportions. All big and small companies, infrastructure projects, schools, colleges, hospitals, government and private buildings, ports, hotels, stadiums, and all business activities should be covered by terrorism insurance.

What it covers?

  • Physical loss or physical damage occurring caused by an act of terrorism
  • Loss, damage, cost, or expense directly caused by, resulting from or in connection with any action taken in suppressing, controlling, preventing, or minimizing the consequences of an act of terrorism by the duly empowered government or Military Authority.

What is not covered?

  • Loss or damage caused by or arising out of burglary, house – breaking, looting, theft, larceny or any such attempt or any omission of any kind of any person (whether or not such act is committed in the course of a disturbance of public peace) in any action taken in respect of an act of terrorism

For registration of claims and to learn more about our claims process please Contact our dedicated claims team for advice on an incident/claim.


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