War Risk Insurance

What Does War Risk Insurance Mean?

War risk insurance covers damages resulting from acts of war, such as invasions, revolutions, and military coups. Some insurance companies also categorize terrorism as a war risk, while others treat it as a separate risk. War risk insurance can cover various costs, including property damage, bodily injury, death, emergency evacuations, and other issues that may arise during a war.

Insuranceopedia Explains War Risk Insurance

Most insurance policies do not cover losses resulting from acts of war. Therefore, if a company, for example, operates in a politically unstable country or one where a revolution occurs, it would be prudent to purchase war risk insurance coverage for its property and employees in that country. Companies that operate internationally often add this coverage on top of their standard business insurance when they have offices, equipment, or staff in regions where conflict is a real possibility.

Private insurance companies do not always offer war risk insurance for every scenario. For instance, soldiers often face difficulties in obtaining life and disability insurance because they are considered too high-risk. Service members who do qualify for private coverage sometimes have to look at no medical exam life insurance options, since underwriters often class active-duty military as high-risk. In such cases, the government provides war risk insurance through various programs.