New ACE Terror/Violence Coverage Addresses Bomb Threat Hoaxes, Looting and More

ACE Group is marketing new multinational insurance coverage to help businesses handle fast-evolving terrorism and political violence problems. The policy addresses a wide range of areas including bomb threat hoaxes, looting and pillaging.

The ACE Political Violence and Terrorism Plus plan is targeted for businesses in Continental Europe, the Middle East, Africa and the Asia Pacific regions. As structured, it provides multinational cover, but also integrated cover for terrorism and political violence perils.

ACE said the new policy builds on earlier efforts in the space, such as the launch of ACE Shield in 2012 to cover gaps between traditional property, terrorism and political violence insurance policies. It also follows ACE’s recently announced increase in capacity offered of up to $100 million.

Ace Political Violence and Terrorism Plus addresses terrorism/political violence perils including:

• Bomb hoax threat—ACE said it is one of the first insurers to include it in its coverage.
• Transit cover—Cover for goods in transit traditionally excluded from this type of policy.
• Looting and pillaging directly following an insured peril—Most policies include this, but ACE said it is necessary in much of the world, particularly for retail sector client
• Time element select—insured benefits from variable and integrated business interruption cover. Essentially, this gives clients flexibility in terms of how they choose their business interruption cover once a loss happens.
• Contingent business interruption extensions—including denial of access, public utilities and customers and suppliers extensions. ACE asserts that these are typically left out of a regular business interruption extension.
• Capital additions and new acquisitions—Clients have cover for new locations within existing territories, something that ACE said is useful if they are expanding.
• Other insurance clause—If other policies are in place, clients state clearly that this policy will be the primary one. It eliminates issues in terms of contribution and delays in claims payments if there are questions about which policy must respond first.
• Group interdependency—traditionally excluded from this type of policy. This gives clients coverage to the main premise that suffers a loss plus other depending buildings affected by the loss.
• Loss of control clause—Something that is necessary if government authorities cause major property damage if it is responding to or attempting to mitigate a terrorist attack.

Source: ACE Group