Terrorism Risk Insurance
Terrorism Risk Insurance
Terrorism Risk Insurance protects businesses against property damage, business interruption, and financial loss caused by acts of terrorism. It covers deliberate acts of violence committed for political, ideological, or religious purposes that result in explosions, arson, shootings, or attacks on infrastructure.
Standard commercial property and business interruption policies often exclude terrorism-related losses. This specialised cover is essential for businesses in high-profile locations, critical infrastructure, public venues, transport hubs, or industries with elevated exposure to terrorist threats.
At Angelic Insurance, we help businesses assess their risk and access terrorism cover through both government-backed schemes and private insurers. Our brokers provide general advice to ensure your business is protected against unpredictable and devastating events.
How It Works
We work with you to structure terrorism coverage that complements your existing property or business insurance program.
Assess your location and exposure
We evaluate your building type, location, occupancy, and activities to understand exposure to potential terrorist threats.
Determine the required coverage
We help identify whether you need property, business interruption, third-party liability, or event-specific terrorism protection.
Compare insurer and government schemes
We explore options through private insurers or the Australian Reinsurance Pool Corporation (ARPC) for eligible properties.
Customise the policy to your needs
We tailor the policy based on property value, revenue impact, and security measures in place including optional extensions for active assailant events.
Provide documentation and confirmation
Once accepted, we issue Certificates of Currency and supporting documentation for your insurer, landlord, or risk team.
Support through renewals and claims
We assist with updates, incident response planning, and claims guidance if a terrorism-related event impacts your operations.
Why You Need It?
Terrorism events can cause widespread disruption, even if your business is not the direct target. This cover protects against the financial fallout of violent attacks.
Covers property and asset damage
If a terrorist act causes fire, explosion, or structural damage, the policy helps cover repair or rebuilding costs.
Supports business continuity
Business interruption protection helps you maintain cash flow while repairs are underway or operations are suspended.
Helps meet lease or mortgage obligations
Many commercial landlords and lenders require terrorism cover in central business districts or near critical infrastructure.
Complements standard property insurance
Terrorism is often excluded under general policies. Standalone or extended cover ensures you’re not left unprotected.
Offers peace of mind in uncertain times
Whether your business is in a major city or public-facing industry, insurance provides confidence in your ability to recover.
How Angelic Insurance Can Help?
We help businesses understand their exposure and structure cost-effective terrorism insurance with compliant, reliable coverage.
Compare options from ARPC and private markets
We assess whether your property qualifies for ARPC terrorism cover or if a standalone private policy is more suitable.
Tailor cover to your business model
Whether you operate a stadium, hotel, transport service, office, or retail outlet, we help you secure the right protection.
Support documentation for leases and contracts
We provide fast access to Certificates of Currency and help meet lease, compliance, or investor requirements.
Coordinate with your property insurer
We ensure your terrorism cover integrates with your existing property and interruption policies avoiding duplication or gaps.
Assist during high-alert periods
In times of increased risk, we help you assess additional protection options or adjust
Challenges Businesses Face Without Terrorism Risk Insurance
Without appropriate cover, your business may face serious financial hardship or compliance issues after a terrorism-related event.
Loss of property without reimbursement
Property damaged by terrorism may not be covered by standard insurance leaving you to fund repairs or replacements.
Business closure due to exclusion
If your policy excludes terrorism, business interruption protection may not apply during downtime threatening your cash flow.
Inability to meet contract terms
Some leases, lenders, or clients require proof of terrorism insurance. Not having cover can breach your obligations.
Legal and liability exposure
Injuries to staff or customers during an incident could trigger liability claims not covered under basic insurance.
Delays in recovery
Without proper protection, financial constraints can delay repairs, affect reputation, and reduce operational resilience.
Case Studies: How Terrorism Risk Insurance Helped Real Businesses
Case 1 – CBD office impacted by evacuation order
An office tower in Sydney’s CBD was evacuated due to a suspected threat. While no damage occurred, business interruption insurance under terrorism cover paid $24,000 in lost income.
Case 2 – Hotel suffers glass damage from nearby explosion
A hotel located near a public transport station sustained window and facade damage following a terrorist incident. The policy placed by the client’s broker paid $68,000 in property repair costs.
Case 3 – Stadium event cancellation due to security incident
A major sporting event was cancelled after a nearby threat caused the venue to close. Terrorism insurance provided $180,000 in lost ticket revenue and vendor payments.
Case 4 – Shopping centre access blocked by authorities
A regional retail centre was inaccessible for 48 hours due to a lockdown following an attempted attack nearby. The insurer paid $46,000 in lost sales under business interruption coverage.
Frequently Asked Questions
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