How to Determine What a Insurance Company Defines as Acts of Terrorism

Before you sign your company up for insurance, you need to determine what the company defines as acts of terrorism. The potential for terrorist attacks on targets big and small has become a part of daily life for all Americans. In a few simple steps, you can determine what an insurance company defines as acts of terrorism and ensure you are covered against potential attacks.

Instructions

Difficulty: Moderately Challenging

Check Definition of Terrorism by Insurance Companies

1. Set up an appointment to speak with potential terrorism insurance providers. Instead of relying on a website to determine what an insurance company defines as acts of terrorism, you should speak directly with an agent who can provide examples and answer questions in a matter of moments.
2. Ask for a sample insurance policy from a provider to determine their general approach to terrorism. Underwriters adjust standard policies to respond to your unique needs and risk history but a sample policy will illuminate you on a company's definition of terrorism.
3. Review all sections of an insurance policy or provider website that cover artificial or man-made incidents. Insurance companies typically have a higher threshold of proof for issues like burglary or sabotage due to potential complicity by members of an insured company.
4. Compare definitions of terrorism between local, regional and national insurance providers. There is no uniform definition of terrorist acts in the insurance industry and some providers may offer wider parameters for terrorism insurance claims.
5. Look at the mission statement and other policies provided by an insurance company when you have limited access to terrorist policy information. You should look for companies that provide risk management solutions for larger corporations and government agencies. These providers typically have the financial resources to protect your financial assets from terrorist attack.
6. Familiarize yourself with the current debate between governments, insurance providers and businesses over defining terrorism. The emotional undercurrent of terrorism has caused problems for all three parties in their search for a unifying definition for insurance purposes. There are a variety of think tanks and government agencies in the United States currently debating terrorism insurance beyond the current law.

Tips & Warnings

• Compile a list of all insurance claims and past incidents that have taken place in your facilities. Insurance underwriters look at employee insurance claims along with corporate insurance issues to determine the coverage you receive. Retrieve records back to the origination of your business that is pertinent to your worthiness for insurance.