Political violence and terrorism insurance (PV)

Standalone political violence and terrorism insurance protects property and activities against damage caused by terrorism, sabotage, riots, strikes, civil unrest, insurrection and, depending on the scope, certain acts of war. These perils are frequently excluded from standard property policies, hence the development of a specialist market, largely driven by the London market and certain national pools. Cover can include physical damage, business interruption and, in extensions, losses consequent on a mere threat or area closure. Underwriting requires fine geopolitical analysis, a mapping of urban accumulations, several risks possibly hit by a single attack, and monitoring of evolving tensions. This market is volatile, sensitive to news events and international tension cycles, and complements public terrorism cover schemes where they exist, offering tailored solutions to exposed companies. Not to be confused with public terrorism schemes, such as GAREAT in France, which cover terrorist attacks, nor with political risk insurance, which covers a government's act against an investor. Where the word appears: in the standalone policy, under London market wordings such as LMA 3030 for terrorism and sabotage, known as T3, whose current version is LMA 3030B of October 2025, and conversely in the strikes, riots and civil commotion exclusion of property policies.

• LMA 3030, Terrorism Insurance Physical Loss or Physical Damage Wording (T3), and LMA 3030B, October 2025