Canadian Underwriter

Frank Cowan Company offering new suite of products for terrorism coverage

October 17, 2017   by Canadian Underwriter

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Now available from Frank Cowan Company is a new suite of products designed to help municipalities and public services organizations address the terrorism risk they face and transfer some of that risk via the insurance product.

Partnering with XL Catlin Syndicate 2003 at Lloyd’s – which writes a full range of property, casualty, marine, aviation and other specialty coverages, including terrorism risk solutions – the suite for terrorism coverage became available to public entities and specialty organizations country-wide on Monday, Frank Cowan reports.

Related: Risk associated with domestic acts of terrorism shifting: RIMS report

The company notes in a statement Tuesday that the suite provides clients the option of selecting one or a combination of the following:

  • Active assailant event insurance – A company information sheet defines this as a premeditated malicious physical attack by an active assailant (who is physically present) armed with a hand-held weapon that causes direct physical loss and/or bodily injury or death. Coverage, which can be triggered by property damage or bodily harm, responds when three or more persons that are physically present during the attack are affected. The maximum limit is $10 million for any one occurrence and in the aggregate.
  • Chemical, biological, radiological and nuclear (CBRN) insurance – The product is triggered by property damage or contamination resulting from the release of CBRN material with malicious intent. It covers physical loss or damage, including demolition, decontamination and prohibition of access orders, blast damage, as well as business interruption (BI). The maximum limit is $25 million for any one occurrence and in the aggregate.
  • Terrorism property insurance – The policy provides physical loss or damage and BI caused by acts of terrorism – defined as an act committed for political, religious or ideological purposes, including the intention to influence any government and/or to put the public in fear for such purposes – or acts or sabotage. The maximum limit is $50 million for any one occurrence and in the aggregate.
  • Terrorism liability insurance – The insurance provides coverage for financial costs against claims for damages by third parties who are injured in a terrorist attack. Coverage also extends to third-party property damage. This is key because these exposures are usually excluded under liability policies. The maximum limit is $25 million for any one occurrence and in the aggregate.

Related: Business losses from terrorism shifting away from property damage: Aon

“Managing terrorism risk today requires a multitude of strategies to protect people, property, reputation and finances,” notes a release from Frank Cowan, which provides specialized insurance programs, including risk management and claims services for municipalities and public service, healthcare, education, community and children’s and social service entities across the country.

“The changing pattern of terrorism risk has some organizations questioning whether they are adequately insured,” the statement goes on to say.

The Canadian Incident Database – provided by TSAS, the Canadian network for research on terrorism, security and society – reports there have been 1,415 such incidents from 1960 through 2015, with Canadian targets amounting to 1,264 of those.

“Anyone watching the news can understand why municipalities and organizations such as health units and schools would want to explore terrorism coverage,” Larry Ryan, president of Frank Cowan, says in the statement.

Pointing out that it is difficult “to predict where vulnerabilities can occur from one month to the next,” Ryan adds the new product suite is meant to help “transfer some of that risk via an insurance product.”

Related: Terrorism insurance gaps demand rethinking focus on property: C4 2017 speaker

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