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Terrorism Risk Solution

Standalone terrorism policies’ value as an alternative to TRIP coverage

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Terrorism is a dynamic global risk that can cause significant financial and operational harm to businesses. Commercial insurance offerings can help to manage these impacts, but it’s important for businesses to understand their options. These include standalone terrorism coverage, which is often more flexible than other solutions available to insurance buyers.

More Flexible

In the US, the federal Terrorism Risk Insurance Program (TRIP) — enacted following the terrorist attacks of September 11, 2001 — has played an important role in ensuring the continued stability and health of the property terrorism insurance market.

Via TRIP, which has been reauthorized through the end of 2027, businesses can purchases terrorism coverage as part of their all-risk property policies. Such coverage, however, is limited to acts of terrorism in the US that result in losses of $5 million or more and are certified by the Department of the Treasury.

Standalone property terrorism is available an alternative or complement to TRIP coverage, and can offer several advantages. Unlike TRIP coverage, a standalone property terrorism insurance policy does not require government certification in order for a claim to be paid. Standalone policies also offer broad terms and conditions that can include:

  • A definition of “act of terrorism” as the use of force or violence — of any person or group, whether acting alone or on behalf of or in connection with any organization — for political, religious, or ideological purposes, including the intention to influence any government and/or to put the public in fear for such purposes.
  • Consistent wording globally.
  • Tailored coverage for selected locations, coverage outside of the US, and political violence coverage.
  • Multiyear policy terms.

Standalone policies may also offer more competitive pricing than coverage via TRIP, as the standalone market is generally unaffected by natural catastrophe events.

Customizable Coverage

To build the right standalone terrorism policy, businesses must consider several factors. This starts with identifying what specific coverage is needed. Standalone policies can be customized to include coverage for a variety of exposures.

  • Damage to property, including building contents, vehicles, and more.
  • Loss of income and extra expenses, including an extended period of indemnity.
  • Business interruption.
  • Nondamage business interruption coverage.
  • Loss of rent.
  • Defense costs.
  • First-party active assailant risks.
  • Strikes, riots, civil commotion, rebellion, revolution, war, and insurrection.
  • Nuclear, biological, chemical, and radioactive (NBCR) risks.
  • Property damage as a result of a cyber-attack.
  • The threat of an attack.

Why Marsh?

With extensive terrorism insurance and industry knowledge, claims advocacy experience, strong insurance market relationships, and unmatched consulting expertise, Marsh has the skills and knowhow to help you build an effective terrorism insurance program. Our specialized property colleagues can help you evaluate available active options — including standalone coverage — and build a policy that fits your needs and can respond as needed. We can also help you to model your risk and take steps beyond purchasing insurance to mitigate the risks you could face from a terrorist attack.

Our team of risk consultants can also help you develop, test, and refine crisis management response and business continuity plans ahead of a potential attack. And in the event of an attack, we can provide valuable support in managing your insurance claim.

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Tarique Nageer

Terrorism Placement Advisory and Leader, Property Practice

  • United States

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Risk intelligence FAQs

Via TRIP, which has been reauthorized through the end of 2027, businesses can purchases terrorism coverage as part of their all-risk property policies. Such coverage, however, is limited to acts of terrorism in the US that result in losses of $5 million or more and are certified by the Department of the Treasury.

Standalone property terrorism is available an alternative or complement to TRIP coverage, and can offer several advantages. Unlike TRIP coverage, a standalone property terrorism insurance policy does not require government certification in order for a claim to be paid. Standalone policies also offer broad terms and conditions that can include:

  • A definition of “act of terrorism” as the use of force or violence — of any person or group, whether acting alone or on behalf of or in connection with any organization — for political, religious, or ideological purposes, including the intention to influence any government and/or to put the public in fear for such purposes.
  • Consistent wording globally.
  • Tailored coverage for selected locations, coverage outside of the US, and political violence coverage.
  • Multiyear policy terms.

Standalone policies may also offer more competitive pricing than coverage via TRIP, as the standalone market is generally unaffected by natural catastrophe events.

Standalone policies can be customized to include coverage for a variety of exposures, including:

  • Damage to property, including building contents, vehicles, and more.
  • Loss of income and extra expenses, including an extended period of indemnity.
  • Business interruption.
  • Nondamaged business interruption coverage.
  • Loss of rent.
  • Defense costs.
  • First-party active assailant risks.
  • Strikes, riots, civil commotion, rebellion, revolution, war, and insurrection.
  • Nuclear, biological, chemical, and radioactive (NBCR) risks.
  • Property damage as a result of a cyber-attack.
  • The threat of an attack.

For more on standalone terrorism insurance coverage, contact your Marsh representative.

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