Paris Attacks Remind Businesses of Need for Terrorism Insurance

Paris Attacks Remind Businesses of Need for Terrorism Insurance“Today we are all French.” France showed its support for our country after the attacks on September 11, 2001, and now it’s our turn to show our support for France after the recent terrorist attacks in Paris. My heart goes out to the victims and their loved ones during their time of need.

In the aftermath of this tragedy, it is critical that you talk with your independent agent about whether terrorism insurance is right for your business.

After the September 11 attacks, Congress passed the Terrorism Risk Insurance Act (TRIA) allowing the insurance industry and the federal government to share losses following a major terrorist attack, according to the Insurance Information Institute. The law was renewed for six more years in January 2015 and renamed the Terrorism Risk Insurance Program Reauthorization Act (TRIPRA) of 2015.

Prior to the attacks on the World Trade Center, acts of terror were covered under a standard business owners policy, essentially free of charge. However, today terrorism insurance must be purchased separately or as an endorsement to your commercial property insurance policy. For coverage to be triggered under TRIPRA, an attack has to be declared a “certified act of terrorism” by the Secretary of the Treasury in consultation with the Secretary of Homeland Security.

Once triggered, terrorism coverage will protect a business against damaged or destroyed property– including buildings, equipment, furnishings, and inventory. Terrorism insurance may also provide coverage for losses associated with business interruption costs and liability claims against the business due to terrorist activities. Nuclear, biological, chemical, and radiological (NBCR) events, as well as war coverage, are typically excluded.

If a terrorist attack were to occur, the damage to an uninsured business could be catastrophic. Urban businesses, as well as airports and train stations have a higher risk for a terrorist attack. Certain industries, such as the energy sector, are also at a higher risk.

For more information on whether terrorism insurance is right for your business, contact the licensed representatives at McGrath Insurance Group at 800-342-3859 or visit our website at

*This article is written for informational purposes only and should not be construed as providing legal advice.