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Terrorism Risk Insurance

Businesses and individuals are becoming more likely to be exposed to multiple, complex terrorist attacks. These are being classified as “Marauding Terrorist Active Shooter” (MTAS) attacks, and have been responsible for a significant number of casualties in recent months.

Terrorism Insurance

This changing threat presents different challenges to businesses when considering risk management solutions and insurance against acts of terrorism.

These attacks impact a whole city rather than a confined area. Whilst the area being targeted will suffer physical damage from the incident, businesses located in the area surrounding the attacks or where follow up security operations are carried out are likely to face interruption. This could be as a result of denial of access, further threat or loss of attraction. As such, traditional terrorism insurance products that require a physical damage trigger may not offer coverage for many loss scenarios.

In response to the changing needs of our clients, Arthur J. Gallagher’s Crisis Management team has designed innovative and appropriate solutions for the current terrorism risk.

Our crisis consulting team can model the likely scenarios that could affect a clients business during a terrorist attack, both for physical damage and business interruption and also for non-damage business interruption. We have built this capability in our Farseer modelling tool and can therefore help clients select the most appropriate limits of cover and type of coverage to meet a range of terrorist threat scenarios.

The coverage we can provide includes significant limits for traditional physical damage and business interruption and terrorism liability but also offers sub limited coverage for Denial of access (including non damage), Threat, Loss of attraction and Chemical / Biological / Radiological / Nuclear (CBRN) attacks. We can also provide excess coverage for clients that wish to insure to higher limits for these non damage coverages.

Our approach:
  • Our crisis management team brings together in excess of 100 years of “hands on” operational and insurance market experience in the terrorism arena.
  • We work with underwriters that understand the benefits of effective terrorism risk management and will both discount premiums for such programs and also contribute funds to improve our clients’ risk management programs via our in house team of counter terrorism specialists.
  • We have developed a unique terrorism model that enables us to view a client’s portfolio within our system. We are then able to look for accumulation of value, proximity to potential terrorist targets and run realistic terrorist scenarios to determine the Probable Maximum Loss (PML), and ultimately allow our clients to address their unique concerns and risks.

Get in contact today to find out how we can help you to anticipate and prevent a terrorism risk, and respond and recover should the need arise.