Political Violence & Terrorism Coveragestacie
Acts of terrorism and political violence can occur anywhere. In addition to the toll on the people who live in the region, these events can disrupt businesses and result in major financial loss. Political violence and terrorism coverage exists to mitigate these commercial risks.
The Changing Face of Political Violence and Terrorism
According to the United Nations, we have entered a new era of conflict and violence. The number of war deaths has gone down. That’s the good news. The bad news is that conflict and violence are actually on the rise. Modern conflicts tend to be less deadly, and they often occur between domestic groups instead of occurring between states.
Technological developments have also changed the risks. Biological weapons are easier to obtain, increasing the threat of a biological attack. Drones, 3D printing, artificial intelligence and ransomware all add to the known risks.
The political environment is changing, as well. According to the Insurance Journal, a report from Aon found that “a lack of political consensus” is creating a difficult environment and impacting businesses. Businesses in Europe are having to navigate an increasingly complex security landscape that includes threats to employees, property, investments and supply chains.
In the future, we can expect political violence and terrorism to continue to change as new technologies emerge, the political landscape shifts, and counter-terrorism efforts evolve.
Defining Political Violence and Terrorism
The terms “political violence” and “terrorism” can encompass a wide range of destructive acts, including war, terrorism, sabotage, strikes, riots, biological attacks, chemical attacks, radiological attacks, nuclear attacks, active assailants and more. Political violence and terrorism insurance can provide coverage for both property damage and business interruption associated with these threats. Liability coverage is also available.
To determine exactly what is and is not covered in a specific political violence and terrorism insurance policy, however, it’s important to look at the details of the coverage. Check for exclusions and requirements within the policy and verify that the coverage is sufficient to meet the exposures of the policyholder. For companies with unique needs, look for bespoke coverage options.
Identifying Clients for Political Violence and Terrorism Coverage
In today’s environment, all companies should consider buying political violence and terrorism cover – not just those operating in terrorism hot zones. Multinational companies operating in regions with known exposures are especially likely to need coverage. We also cover residential homes with political violence and terrorism coverage, which are also equally exposed.
Companies that may benefits from political violence and terrorism coverage include, but are not limited to, those operating in hospitality, entertainment, real estate, retail, telecommunications, energy, utilities, finances, construction, transportation and infrastructure.
Protect Your Clients
Just as it’s important to protect your clients from natural disasters like floods and fires, it’s important to protect them from acts of political violence and terrorism. Talk to your clients about their risks and about suitable coverage.
Costero Brokers is here to help you source and deliver the protection your clients need. Contact us to learn more.