Is terrorism included in business insurance policies?

After the September 11th 2001 terrorist attacks, terrorism insurance became offered as a separate item for companies and businesses. Prior to 9/11, this type of insurance was generally included in standard commercial insurance. The 9/11 attacks resulted in billions of dollars in financial loss, as a result commercial insurance companies started erasing the terrorism coverage clause from their policies. The Terrorism Risk Insurance Act that was passed in 2002 made commercial insurers offer terrorism coverage with the government sharing a percentage of the cost in the event that claims are too expensive.

For individuals, standard insurance policies for homeowners generally include coverage for damage to personal possessions and property resulting from terrorist activities. Typically, terrorism is not specifically indicated but most insurance policies cover damages due to smoke, fire, and explosions. These are all events that can occur in a terrorist attack.

There are several details that differ between coverage for business and companies and for individuals. It would be best to consult your insurance provider regarding such items in order to be aware of what your coverage is or what can be potentially covered in your insurance policy.