Terrorism – Is Your Business Protected?


In the past two decades, terrorism has become a common term. What does that mean from an insurance standpoint? Is your business protected against acts of terrorism? First, let’s define what is considered an act of terrorism. For insurance coverage to apply it must meet the definition of a certified act of terrorism.

That definition, as defined by the Secretary of Treasury, indicates that the incident:

  • Must be a violent act that is dangerous to human life, property, or infrastructure
  • Must cause damage within the U.S. or an area of U.S. Sovereignty
  • Must be committed as part of an effort to coerce and produce losses in excess of $5 Million

The U.S. government enacted the Terrorism Risk Insurance act in 2002, which included perils after September 11, 2001. September 11, 2001 cost the insurance industry approximately $47 Billion. This act was passed to require insurers to make terrorism coverage available to commercial policy holders.

Between 1994 and 2020, there were 893 terrorist attacks and plots uncovered in the U.S.; these numbers continue to rise (source). Due to ongoing concerns, the U.S. government regularly issues bulletins regarding heightened security risks within the U.S.. If you’d like to check the current bulletins available, please visit dhs.gov/topics/national-terrorism-advisory-system.

Because of these concerns, your insurance policy is required to offer you the option to purchase additional terrorism risk insurance coverage. This is done on a selection or rejection form basis, which means you must sign whether you would like to add this coverage or not. 

If you have questions regarding your policy, and whether terrorism would be covered, please contact your dedicated Sentinel team member who can review your policy. Here at Sentinel, we safeguard your success.

About The Author

Sherri Walker manages the efforts and deliverables of carrier claims adjusters in addition to completing a wide range of insurance claims analyses as Sentinel’s Director of Claims.

Sherri, who has a wealth of multi-line adjuster experience, brings a strong background in customer satisfaction with the ability to diffuse difficult, and sometimes extremely emotional, situations very smoothly.

The Cripple Creek, VA native began her career with Nationwide Insurance in 2005 where she advanced to a Senior Adjuster role. Prior to joining Sentinel, Sherri spent seven years as a Field Claims Superintendent, handling all aspects of claims for Cincinnati Insurance Companies.