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War Peril

Last updated: April 16, 2018

What Does War Peril Mean?

War peril refers to risks that can cause losses during a war. This includes property damage during a battle, insurgents stealing cargo, or the kidnapping or injury to a company's employees while in a war zone. Most regular insurance policies do not cover war perils because insurance companies find these risks to be too great and too expensive to cover.

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Insuranceopedia Explains War Peril

There are war insurance policies specifically designed to cover war perils. For example, a company can buy a war insurance policy to protect against property damage and theft when they do business in a country at war.

However, some war perils are considered just too expensive for the private market to cover. In these cases, the government provides insurance. For example, after 9/11 insurers stopped selling affordable liability coverage for commercial planes; therefore, the Federal Aviation Adminstration started providing this insurance.

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