Terrorism Insurance covers property damage, business interruption, and liability claims resulting from certified acts of terrorism. Critical for businesses in major metropolitan areas or high-profile buildings.
Terrorism Insurance
What Is Terrorism Insurance?
Terrorism Insurance covers losses resulting from certified acts of terrorism, including property damage, business interruption, and liability. It can be added to most commercial property and casualty policies via the Terrorism Risk Insurance Act (TRIA) endorsement.
Who Needs Terrorism Insurance?
While rare, terrorist events can cause large-scale loss, especially in major metropolitan or symbolic targets. Without this coverage, many standard policies will exclude terrorism-related incidents — leaving you vulnerable in the event of an attack.
Common industries that often require Terrorism Insurance include:
- Urban businesses and high-profile properties
- Sports venues, theaters, and entertainment centers
- Financial institutions, hotels, government contractors
- Infrastructure, transit, and logistics operators
What Does Terrorism Insurance Cover?
Terrosism Insurance typically covers:
- Damage to buildings from certified terrorist acts
- Business income losses due to evacuation or destruction
- Liability from injuries or lawsuits resulting from terrorism
- Debris removal and extra expense coverage
What Doesn’t Terrorism Insurance Cover?
While Terrorism Insurance offers broad protection, it doesn’t cover:
- Acts not certified by the U.S. Secretary of the Treasury
- Cyber terrorism (covered under Cyber Insurance)
- War, rebellion, or civil unrest
- Nuclear/biological/chemical incidents (usually excluded)
How Much Does Terrorism Insurance Cost?
The cost of Terrorism Insurance varies based on factors like business size, property size, industry, location.
Key Cost Factors:
- Location and risk profile
- Property size and business type
- Whether you’re a federal contractor
- Size of your property or portfolio
Typical Cost Range:
- TRIA Endorsement: $50–$500/year for small businesses
- Standalone Terrorism Coverage: $1,000–$10,000/year+ for high-value assets
Risk Management Tips
To minimize potential claims:
- Conduct a site security assessment to identify soft targets and vulnerabilities.
- Install surveillance cameras and access controls in high-traffic or sensitive areas.
- Train employees in emergency response and evacuation protocols.
- Establish relationships with local law enforcement and first responders.
- Maintain redundancy in digital operations to continue business if a primary site is compromised.
- Ensure contracts include force majeure or terrorism-related liability limitations.
Talk to An Expert
Our dedicated experts are ready to provide tailored insurance solutions to clients across a wide range of industries and specialized services.
Schedule a consultation to see how Alliance Risk can reduce your insurance risk.
– We look forward to partnering with you.