Terrorism has become an unfortunate fact of life. The news is filled with headlines related to acts of terrorism or thwarted attempts. These types of tragic events are changing how business owners are protecting their interests.

The real risk to your business

The perpetrators of terrorist attacks and the methods they use continue to shift and relatively unprotected targets are becoming a greater focal point. Property damage and bodily injury are the primary risks associated with terrorism, yet there are liability factors that you should consider too. These include:

Insurance solutions

Domestic terrorism coverage is available in traditional policies and stand-alone terrorism risk insurance. Traditional policies, including commercial general liability and property policies, may provide some coverage for terrorism risk if not expressly excluded.

Workers’ compensation insurance is another traditional policy that may provide some form of terrorism coverage. Unlike property and casualty policies, workers’ compensation policies will not have terrorism (or war) exclusions.

You may also consider purchasing stand-alone terrorism coverage. Stand-alone policies typically exclude:

What to look for in stand-alone terrorism policies

If you opt for stand-alone coverage, selecting the policy with the best terms involves more than just ensuring coverage extends beyond “certified acts of terrorism.” Carefully review the valuation terms in any stand-alone terrorism policies you’re considering. This will help ensure you are appropriately compensated for loss and damage, even when actual repair or replacement isn’t possible or ideal.

It’s also important to check the definitions of certain terms. For example, different policies have different standards for what constitutes an “occurrence” and how many occurrences can be associated with a given claim.

Other policy terms to consider

Traditional policies or stand-alone terrorism risk insurance generally will include these terms:


For more information on protecting your business from terrorism risk, reach out to your insurance professional. They can explain the types of insurance available and what policy terms are right for your business.

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