As we get closer to each 09/11 anniversary, we receive increasing number of clients calling about Terrorism Insurance. We always advise them that it is quite costly and typically purchased by companies who are sending employees to known High-Risk Countries, especially in the Middle East.
Interestingly, this is not what most clients think of when they think about Terrorism Insurance. Most clients are actually thinking about riders for their Property Insurance. Although this is beyond the scope of our agency, we do have strategic partnerships with more than one firm to which we can refer, if that is what you were hoping to find here.
In fact, if you do an internet search for “Terrorism Insurance” the first listings that come up point to insurance for “property owners to cover their potential losses and liabilities that might occur due to terrorist activities.”
However, what most people don’t think about are the exclusions most life and travel insurance policies have in the “event of war,” what some might think of as a terrorist act. This was a big concern for too many of the life insurance beneficiaries of those that were in The Twin Towers on 09/11, as well as The Pentagon and in Pennsylvania. Had the U.S. declared war, insurers may have chosen not to pay out. However, as it turned out, those life insurance policies were indeed paid out (unless there was some unique circumstance which we do not know about).
As recently as July 17, 2014 Reuters reported that “the U.S. Senate voted overwhelmingly…to reauthorize a federal terrorism risk insurance program… The program was established after the 2001 attacks, when insurers suffered steep losses and some stopped offering terrorism risk insurance on commercial buildings.”
However, just a few days later, on July 24, 2014, Newsday reported that “The reauthorization of the Terrorism Risk Insurance Act (TRIA) won’t be brought up in the U.S. House until September at the earliest.” So stay tuned!
You can read more about the TRIA on the organization’s website.
What’s coming up for you as we approach this anniversary?
We know many of our clients, and friends, become increasingly wary of traveling on or around this day.
Is this also true for you and those you love?
What are your concerns?
Do you have questions?
We would be happy to help you with any of your travel and life insurance policy needs and questions.
Please feel free to comment below, on our facebook page, or by completing the confidential form below and one of our experts will be in touch with you right away!