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Talk to Your Insureds About Terrorism Insurance

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In these uncertain times, terrorism continues to be a persistent and significant threat for businesses. The types of threats have changed over the years with attacks by individuals and small groups against soft targets becoming more commonplace, and vehicles, knives and hand-held devices as weapons increasingly being used by attackers. It’s important that clients understand that terrorism exposures are typically not covered under commercial insurance policies, including all-risk policies, unless with a special endorsement through TRIPRA/TRIA extension or the purchase of a stand-alone policy.

RPS offers Terrorism & Sabotage coverage via our online quoting platform. Coverage is designed to respond in the event of damage and/or financial loss to buildings, equipment, furnishings and inventory as a result of a terrorism act. In addition, the policy will cover non-damage financial loss including for loss of attraction, threat, and denial of access. Other policy features include coverage for brand rehabilitation, claims preparation, contingent financial loss, damage to property at any unspecified third-party site, damage to property while in transit, seepage contamination and pollution/clean up, utilities, contract works and extinguishment expenses. The coverage is priced competitively with TRIPRA/TRIA premiums.

In considering whether an insured should purchase Terrorism insurance, look at the type of business the client is in. Some industries have a higher risk than others, such as the energy sector (oil, gas, electricity), entertainment, transportation, and hospitality. Also, look at where the business is located. Commercial urban centers, airports, train stations, federal buildings, and sports arenas are at the highest risk for a terrorist attack. In addition, some landlords require tenants to purchase Terrorism coverage, so it’s important for clients to review the provisions in their lease. The bottom line: Clients who may be affected by a terrorist attack either from direct physical damage and subsequent financial loss should be looking to add Terrorism coverage to their portfolio of insurance products.

Access the RPS e-Commerce platform to obtain instant quotes for Terrorism insurance. You also have the ability to bind coverage without additional underwriting review.

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