2 December 2014 Insurance

XL launches US standalone terrorism policy

XL has introduced a new standalone terrorism insurance policy in the US to help businesses address potential gaps in coverage provided by the Terrorism Risk Insurance Program Reauthorization Act (TRIPRA).

Under the current TRIPRA legislation, an act must be certified by the US Treasury Secretary, Secretary of State or Attorney General as an act of terrorism for businesses to collect federal terrorism coverage. Losses less than $5 million are not protected under the federal programme.

Ben Tucker, head of XL’s US war, terrorism and political violence underwriting team, said: “With TRIPRA reauthorisation still in question or uncertainty around what the scope of protection in the future might look like if it’s extended, many businesses do not want to leave their terrorism insurance protection in question. Instead, they’re seeking TRIPRA alternatives that not only address potential coverage gaps but extend protection in more situations, without a government certification requirement.”

“While $1.9 million in losses might not have been enough to certify the Boston Marathon bombings as an act of terrorism, it certainly was enough to raise concerns among many businesses,” said Tucker. “A $100,000 uninsured loss can be too much for many businesses to sustain without the right insurance protection. So businesses have a higher degree of coverage certainty, we’ve created a market-leading policy that more broadly and comprehensively addresses acts of terrorism and sabotage.”

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