Terrorism

What Does Terrorism Mean?

Terrorism is the deliberate use of violence or intimidation to achieve a specific outcome, often motivated by political or religious ideology, or by an individual or group’s desire to cause destruction or achieve a goal through violence.

In the context of insurance, assessing the risk of terrorism and setting appropriate premiums is challenging. As a result, most casualty and property insurance policies specifically exclude coverage for terrorism. However, in some cases, endorsements may be available to provide terrorism coverage.

Insuranceopedia Explains Terrorism

One of the most well-known acts of terrorism was the destruction of the World Trade Center Twin Towers on September 11, 2001. This tragic event resulted in the deaths of thousands of people and caused approximately $30 billion in losses. In this case, hijacked planes were flown into the buildings. While planes were the primary weapon used in this act of terrorism, bombs, and other weapons are more commonly employed in such attacks. A more recent example of terrorism is the Boston Marathon bombing.