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What is Terrorism Coverage and Does My Business Need it?

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Is your business at risk for a terrorist attack?

While that might not be a question you may want to think about, it’s important as a business owner to consider if your company is in a high risk area or considered a type of company that could be hit by a terrorist attack.

We get a lot of questions from our commercial lines customers about this type of policy. First of all, what exactly is Terrorism Insurance and what does it cover? “A commercial terrorism policy covers damaged or destroyed property—including buildings, equipment, furnishings and inventory. It may also cover losses associated with the interruption of your business. Terrorism insurance may also cover liability claims against your business associated with a terrorist attack.” (

Pre 9/11 this type of coverage would have been a little less thought about and would have been little to no cost to an insured. However, this is a different time, and we are all too familiar with the devastation that can come from acts like 9/11. The Treasury Department, who are the ones to determine whether or not an act is an act of terrorism, determines that around 60% of businesses in the U.S. currently have a Terrorism Policy in place.

Some companies opt out due to the fact that they do not provide services that would be a target to a terrorist group, such as an energy provider, or gas company. Also, businesses that are located in a rural community such as the surrounding Lima areas tend to save their money by saying no to the coverage due to the fact that they are less of a target in the country.

One of the more common acts of terrorism today is a cyber-attack.

As we know there is a lot of risk that can come with people’s information being stolen off of their own computers as well as the companies they trust with their information. Unfortunately this kind of theft  will not usually be covered. “In general, terrorism insurance is unlikely to cover a cyber-attack, and a small business concerned about this risk should consider purchasing separate cyber liability insurance.” (

There is a lot to consider when thinking of purchasing this type of insurance. You can contact your Stolly Insurance Agent to see how much it would be to add this coverage to your insurance, if you would like to read more on the subject you can read the full article from the Insurance Information Institute.