Terrorism and Insurance

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Terrorism targets

At risk for terrorist attack are high-profile locations with current exposure to loss and damage. Such locations include the following:

Shopping centers

Religious buildings or occupants

Historical or cultural locations

Stadiums and amusement parks

Mass transit

Utilities or telecommunication

Government or public buildings

Nuclear power facilities

Any buildings located in the vicinity of the foregoing

According to the Heritage Foundation, the majority of terrorist attacks have been in the form of bombings (90%). Other methods used were:

Kidnapping (6%)

Armed attack (2%)

Arson (1%)

Firebombing (1%)

Other methods (2%)

Businesses were the common target, accounting for nearly 87% of these attacks. Only about 3% of the attacks were directed at military establishments and facilities. Diplomatic establishments were next (1.5%) followed by government facilities that were neither military nor diplomatic (less than 1%).

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Not only are policy forms, clauses, rules and court decisions constantly changing, but forms vary from company to company and state to state. This material is intended as a general guideline and might not apply to a specific situation. The authors, LunchTimeCE, Inc., CEfreedom, and Insurance Skills Center, and any organization for whom this course is administered will have neither liability nor responsibility to any person or entity with respect to any loss or damage alleged to be caused directly or indirectly as a result of information contained in this course.