Most Costly Terrorist Acts by Insured Property Losses?

In this Sept. 11, 2001, file photo, damage to the outer ring of the Pentagon is shown after a hijacked airliner crashed into the building. (Photo: Will Morris/AP Photo)

As recent world events highlight, terrorism risk appears to be changing. Small groups and “lone wolf” terrorists are now a growing concern. Companies and insurance clients may be questioning whether they are adequately insured for business interruption and other property losses. According to a recent article from GlobeSt.com sister publication, ALM’s PropertyCasualty360.com, prior to Sept. 11, 2001, when the World Trade Center and the Pentagon were attacked by terrorists, insurers provided terrorism coverage to their commercial insurance customers essentially free of charge because the chance of property damage from terrorist acts was considered remote, according to the Insurance Information Institute. After September 11, insurers began to reassess the risk. According to the article, concerned about the limited availability of terrorism coverage in high-risk areas and its impact on the economy, Congress passed the Terrorism Risk Insurance Act. The act provides a temporary program that, in the event of major terrorist attack, allows the insurance industry and federal government to share losses according to a specific formula. The Terrorism Risk Insurance Act was signed into law on Nov. 26, 2002, and renewed again for six years in January 2015. The new law is known as the Terrorism Risk Insurance Program Reauthorization Act of 2015. Unfortunately, terrorism has been around for decades, the article states. Remember when IRA car bombs and hijacked airplanes where always in the news? Below are just a few of the most costly terrorist acts by insured property losses. *Bomb attack on Israel’s embassy in Buenos Aires. March 17, 1992 Buenos Aires, Argentina Insured property losses:  $51 million . *Hijacked Ethiopian Airlines Boeing 767-260 ditched at sea. Nov. 23, 1996 Indian Ocean Insured property losses:  $60 million . *Four bombs explode during rush hour in a tube and bus. July 7, 2005 London Insured property losses:  $63 million . Riot. July 25, 1983 Sri Lanka Insured property losses: $63 million . Click here to see more and read the full article on PropertyCasualty360.com.