Terrorism Risk Insurance

Terrorism risk insurance covers loss or damage from terrorist acts where the standard marine hull policy excludes them. Hull and machinery cover ordinarily excludes war and terrorism via the Institute War and Strikes Clauses framework, so the exposure is bought back through the war-risk market, often as the strikes, riots, civil commotions, and malicious-acts element of a hull war policy. The cover responds to listed-area and additional-premium mechanics set by Joint War Committee guidance; some national schemes (the US Terrorism Risk Insurance Act of 2002) backstop land terrorism but not marine hull war.