XL Catlin Doubles Available Limits for Standalone Terrorism Coverage

February 25, 2016

Terrorism Word Cloud on Black BackgroundXL Catlin said it has doubled available limits for its standalone terrorism coverage and added other bells and whistles in what it described as a market response to new attacks in cities and schools in recent months.

The property/casualty insurer and reinsurer said it boosted available liability limits for the coverage to $200 million. XL Catlin’s standalone terrorism insurance policy was only launched in 2014, as a bid to cover gaps not addressed by the federal Terrorism Risk Insurance Program Reauthorization Act, or TRIPRA.

Additionally, XL Catlin said it is adding specialized active assailant coverage, which offers up to $35 million in liability limits to address TRIPRA shortfalls but also boosts its own terrorism property policies. This coverage addresses a time element, including when authorities determine an insured’s business stopped operating at its current location.

The active assailant endorsement can also include ingress/egress and civil/military authority coverage, which kicks in when an insured can’t access or use a facility after an attack. Additionally, the endorsement includes extra expense coverage, which can address expenses relating to public relations assistance, relocation, counseling and/or psychiatric care, medical expenses, additional security and job retraining.

“A string of attacks in cities and schools worldwide has prompted many companies and communities to reconsider the type of events to which they could be exposed and what the repercussions could be for them,” Ben Tucker, XL Catlin’s head of U.S. Terrorism & Political Violence, said in prepared remarks. “They are taking additional precautions and are looking for more financial protection to properly handle such events and we’re making available insurance protection that is relevant to the evolving risk environment.”

Source: XL Catlin