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Terrorism insurance a proactive risk management tool: RIMS

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A new report from the Risk & Insurance Management Society Inc. suggests that purchasing terrorism insurance is one of the proactive measures risk managers can take to deal with the reality of terrorism exposures.

“Terrorism risk insurance, whether through traditional or stand-alone policies, is an increasingly important element of domestic corporate insurance programs,” RIMS said Tuesday in a statement introducing the new report, “Terrorism Insurance: Understanding the Boundaries of Coverage for a Risk Without Borders.”

The report can serve as a guide for risk managers curious about terrorism insurance.

“The purpose of this report is to equip corporate risk managers, insurance brokers and coverage counsel with the tools to (1) determine whether terrorism risk insurance coverage is necessary; (2) identify what insurance solutions exist to address terrorism risk; and (3) know what to look for when negotiating for coverage,” says the report, by Micah Skidmore of Haynes and Boone L.L.P.

The report reviews topics including existing policies and solutions, along with common exclusions and policy language.

“With terrorism risk being an unfortunate reality, corporate risk managers and counsel can take proactive measures to contain a risk that otherwise knows no bounds,” Mr. Skidmore said in the statement.