Property Terrorism & Sabotage Insurance
Over the past several years there has been a heightened and growing concern on the part of the general public as well as corporate executives about the damage inflicted by acts of political terrorists. The recent bombing on the Federal Building in Oklahoma City, ETA bombings in the Basque region, the destruction of the Central Bank in Colombo, Sri Lanka and other terrorist acts occurring throughout the world have focused world-wide attention on the threat of terrorism.
Acts of terrorism and sabotage against corporate facilities have potentially far-reaching political and economic effects. The bombing of the World Trade Center in New York City is estimated to have cost approximately USD 700 million in disrupted business in the first week alone and the bombing in Sri Lanka Central Bank severly disrupted the financial transactions of businesses based there for several weeks. As politically motivated terrorism and sabotage generates more and more media coverage, businesses, owned by foreign companies will find themselves increasingly targeted.
AIG Europe’s property Terrorism and Sabotage Insurance has been specifically designed to cover the sabotage, terrorism, mutiny, rebellion, insurrection and coup d’état (excluding war and civil war) risks faced by multinational companies operating in countries where these risks are normally excluded from standard insurance programmes. Coverage for strike, riot and civil commotion can be included by endorsement.
Cover is provided for the following incidents on a primary, excess or reinsurance basis: first of all Sabotage which means deliberate subversion that causes damage or destruction of property, furthermore Terrorism meaning unlawful use of violence against people or property to further political objectives, Mutiny which means wilful resistance by members of legally constituted, armed or peacekeeping forces acting in concert against a superior officer. Rebellion consists of organised and open resistance, by force and arms, to the laws or operation of a government, committed by its citizens, Insurrection means the violent rising of citizens or subjects in resistance to their government. Lastly Coup d’état which is the overthrow of an existing government by a group of its citizens or subjects.
Cover includes property damage and business interruption.
Two cover options: either Mobile Equipment War or Strike, Riot and Civil Commotion.
Corporations with operations in high-risk countries.
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AIG Europe Limited
10B rue des Mérovingiens
Tel No: +352 44 30 32-1
Fax No: +352 44 31 07