RealNews

War Exemption Limits Terrorism Insurance

More U.S. businesses and commercial property owners have been buying terrorism insurance since the start of the war in Iraq, insurance companies say, but it is not clear whether any damage they suffer would be covered, because of the “act of war” exclusion in most insurance policies. The law Congress passed last fall requiring companies to offer the coverage does not address attacks that occur during hostilities, such as Iraq, that were not declared a war by Congress. The Treasury secretary would determine whether an attack was a terrorist act, enabling insurance companies to get help from the federal government in paying claims. If an act is not deemed terrorism, insurance companies could invoke the war exemption, industry experts said. “We have reason to believe we could get hit with more terrorist attacks than before the war began,” said Harold D. Skipper Jr., a professor of risk management and insurance at Georgia State University. “But just because we get hit with them doesn’t mean they are coming from Iraq or from war. We still have a lot of potential to continue to employ attorneys.” Full Story

OODA Analyst

OODA Analyst

OODA is comprised of a unique team of international experts capable of providing advanced intelligence and analysis, strategy and planning support, risk and threat management, training, decision support, crisis response, and security services to global corporations and governments.