Does Your Insurance Cover Terrorism?

If religiously-motivated terrorists attack, they may claim it is an Act of God. You had better hope your insurance company does not. To insurance companies, an act of God is any event not influenced by man and minimum coverage often does not include it. Because of the fuzzy nature of those definitions, there is specific terrorism insurance. But after Muslim fundamentalists hijacked and crashed planes on Sept. 11, 2001, terrorism risk insurance quickly became very expensive or unavailable. Congress reacted by passing the Terrorism Risk Insurance Act, which provides an assurance of government support after a catastrophic attack. This kept terrorism risk insurance cheaper for businesses without crippling insurers. read more

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