Business Insurance: Do You Need to Add Terrorism Insurance?

Terrorism insurance is a growing need for companies today. Standard business insurance usually does not cover acts of terrorism. Businesses can often add it with a policy endorsement.

This is a type of special addition or rider to the policy. Should your business add it? Your business insurance agent can help you find out.

• Nuclear events
• Radiological attacks
• Chemical attacks
• Biological attacks
• Cyber risk coverage varies. Usually it has coverage under a separate cyber liability policy.

Some policies also provide business interruption insurance. This helps cover your business’s financial obligations while it rebuilds. It may also provide liability insurance. In this case, the liability coverage minimizes claims against your business.

• The act must be violent.
• An individual or a group must drive the event to coerce civilians or the government.
• Losses must be at least $5 million to receive this certification.
• The state may require damage to be over $100 million to qualify.
• Domestic and foreign acts can fit this bill.

In this situation, contact your insurer to learn if you can file a claim. Follow their instructions to file an appropriate claim.

• A business located in a residential or rural area is less at risk. Businesses in commercial or high-density areas are more at risk.
• Premiums are very affordable. It is generally about three to five percent of the company’s property insurance cost.
• Business type matters, too. Those in the energy sector are more at risk, for example.

It is not possible to know when terrorism might impact your business. Investing in low-cost terrorism insurance can be beneficial. Speak to your business insurance agent to determine how important it is to your situation.

Need Houston business insurance? Look no further. Call Texas Insurance Agency at (713) 921-8000and we can help you get a fast, free quote on an affordable policy.