Terrorism insurance coverage is organized to protect companies from potential physical damage and business interruption deriving from terrorist attacks. It not only addresses operations in emerging markets, but also the very risk of catastrophic losses in corporate headquarters and North American and European offices. Companies need to establish plans to deal with crisis events—such as terrorism attacks. These plans should be comprehensive and integrated throughout the risk assessment process, from the boardroom to the factory floor.

How to address the issue on a financially-sound basis without risking shareholder value?

The first step is to assess the exposure. This comes via risk identification and quantification. The second step is a structured program that responds adequately to the exposure, and protects the company from catastrophic losses.

Marsh Canada’s Approach to Terrorism Insurance

I) Assessment - Together with the corporate professional responsible for risk management, Marsh Canada’s Political Risk broker will help define more clearly the exposure and quantify the adequate indemnity level.

II) Structure - Accessing all markets available for this line of coverage, Marsh Canada’s Political Risk Practice will present the terrorism program structure and negotiate terms of coverage (wording, premium, exclusions, etc.)

III) Placement - Upon a client's decision on the most adequate structure for its terrorism exposure, Marsh Canada’s Political Risk Practice will bind coverage, coordinate document closure of the policy, and collect premium.

IV) Follow-Up and Benchmark - Marsh Canada Limited tracks every movement in the constantly changing terrorism insurance industry. This knowledge is shared with clients via benchmark analysis, market updates, and general news that might concern one specific client and/or exposure region.