XL terrorism insurance policy closes gaps in U.S. backstop coverageReprints
XL Group Ltd. will offer a new terrorism and political violence insurance coverage option to its platinum property insurance program.
The Dublin-based insurer’s platinum property program allows businesses to address 100% of their commercial property risks under one policy form with one carrier, XL Catlin said in a press release issued on Thursday. The new terrorism and political violence endorsement helps address gaps in insurance coverage provided by the Terrorism Risk Insurance Program Reauthorization Act, which does not cover locations outside the United States, according to the insurer.
The endorsement, which offers liability limits up to $100 million, features a broad definition of terrorism, including coverage for acts perpetrated for political, religious and/or ideological purposes, provides an option for political violence peril coverage and addresses perils typically excluded by other property insurers, according to XL Catlin.
“The nature of political violence and terrorism events are ever-changing,” Michele Sansone, president of XL Catlin’s North America Property business in New York, said in a statement. “As we’ve seen recently in a country such as Turkey, events can quickly deteriorate and require specific coverage to address the full breadth of risks which companies face when operating overseas.”