What Does Terrorism Mean?
Terrorism is the deliberate use of violence or intimidation to try to achieve a specific outcome. It is usually motivated by some form of political or religious ideology, or simply an individual or group's desire to cause destruction or to achieve a goal by means of destruction and/or violence.
In the context of insurance, it is extremely difficult to assess terrorism in terms of risk and set appropriate premiums for it. Therefore, most types of casualty and property insurance specifically exclude it from coverage; however, endorsements may be available for terrorism coverage in some cases.
Insuranceopedia Explains Terrorism
One of the most well-known acts of terrorism was the destruction of the World Trade Center Twin Towers on September 11, 2001. This single event caused the deaths of thousands of people and around $30 billion in loss. In this case, planes were hijacked and then flown into the buildings. Although this act of terrorism used planes as its primary weapon, bombs and other weapons are more commonly used in acts of terrorism. The more recent Boston Marathon bombing is another prime example.