POLITICAL VIOLENCE AND TERRORISM AND WAR
A standard Political Violence (PV) insurance policy can indemnify: Physical losses or Damages; Business Income Losses and Extra Expenses; Debris Removal and Third Party Liability (optional)
Cover is now essentially available in four forms:
- Terrorism only: This relates to loss or damage instigated as a result of clear and targeted political, religious or ideological grievances often perpetrated by established and internationally recognised terrorism organisations and therefore excludes losses sustained in the course of public demonstrations and general unrest where the insured is not specifically targeted
- Terrorism and strikes, riots and civil commotion: This covers terrorism as detailed above and losses sustained as a result of civil unrest. This also covers damage as a result of disgruntled workers and employees
- Political violence excluding war and civil war: The third option extends to cover terrorism, strikes, riots and civil commotion plus physical damage incurred during a process of mass social uprising, revolt or military coup. It is a more robust political violence policy that is now increasingly in demand following the events of the last 18 months
- Comprehensive political violence: The final option provides all of the previous covers as well as cover against war, both civil (that is, open conflict between two opposing sides within the same nation or state) and war itself (which would necessitate cross-border conflict, either declared or on an undeclared basis). The fourth option is the most comprehensive political violence physical damage policy. It removes any ambiguity between perils and, most tellingly, when purchased alongside a standard fire policy, provides a more seamless physical damage coverage.
War and Terrorism classes covered:
- Global war, terrorism and political violence cover for non-marine assets, including standard commercial property, fixed and mobile energy assets, leisure and entertainment and civil or governmental property.
- War and strikes cover for transit risk worldwide, including inland and offshore transits.
- Construction projects worldwide, for the full construction/erection period up to 36 months but sometimes to 60 months.
- Third party terrorism liability, including third party property damage cover in marine and non marine industries worldwide.
- Energy specific liability and control of well extra expense coverage arising from terrorism and political violence.
- Limited chemical, biological and nuclear terrorism coverage, dependent on the assets protected and the coverage method employed.
- Event cancellation cover due to terrorism and war and/or strikes, riots and civil commotion