Terrorism in America has, unfortunately, become a cause for serious concern. The brutal attacks on September 11, 2001, left many Americans perplexed and worried about the possibility of future incidents of terrorism in the States and their potential impact on their own lives and financial position. It was by far the deadliest and most expensive terrorist attack in U.S. history to date. The insurance losses from the 9/11 attacks are estimated to have been in the range of $47 billion, after considering commercial liability and group life insurance claims. Thirty-three percent of the losses were claimed for business interruption. Property losses, including the World Trade Center towers, made up about thirty percent of the losses.
There have been other attacks as well, highlighting the increased risk of terrorism. Between 1980 and 2000, the FBI has a record of 335 incidents or suspected incidents of terrorist attacks in the country. Out of these, 247 were listed as domestic terrorist attacks, while 88 were found to be international in nature.
Terrorism is a rapidly growing problem here in the States and is likely to worsen over the next few years. It goes a lot beyond the tragic loss of human life; it causes immense strain to the economy. Those expenses include an increase in security and anti-terrorist expenditures. It also creates a disruption to the supply chain, and business is hampered. All this and more adds a negative impact on the economic growth of a nation.
The risk that is brought on by terrorism is more complex than the other types of insurable risks that we come across. The risks come with its own set of unique difficulties for insurers and other insurance service carriers. Several factors contribute to these unique set of difficulties. Firstly, there is not enough data to measure the frequency and severity of the attack. Then, these acts are not random; they are targeted ones and happen in well-planned locations to maximize damage. They are not accidental, unlike other insurable risks. These are only to name a few of its complexities.
However, several well-known insurance carriers cover acts of terrorism under various personal as well as commercial insurance policies. A standard business policy will not cover losses caused by terrorism, and about sixty percent of American businesses have a terrorism insurance policy in place.
The premiums for a terrorism coverage range from $19 to $49 per million of the value insured, depending on the size of the business. The costs usually represent between three and five percent of a company’s property insurance value.
In the unfortunate occurrence of a terrorist attack that causes damage to your business or personal property, only having a good insurance policy in place is never enough — most insurance carriers aim to give you as low a settlement as possible. You may not be aware that you can hire your own public adjuster. This way, you will have a team of highly qualified experts to advocate for you, working only in your best interest. With all the complex paperwork taken care of, you will be free of stress and will receive the best possible settlement.
Call an Experienced Public Adjuster today to discuss a terrorism damage insurance claim.