February 26, 2016 by Canadian Underwriter
XL Catlin’s crisis management business has doubled available liability limits in the United States for standalone terrorism insurance coverage to US$200 million and unveiled specialized active assailant coverage as an answer to increased terrorism and active assailant threats.
The options are designed to help better protect businesses and public entities south of the border, notes a company statement issued earlier this week.
The liability limits for XL Catlin’s standalone terrorism insurance policy is now US$200 million, double the US$100 million when the policy was first introduced in 2014.
The active assailant coverage has liability limits of as much as US$35 million to address the shortfall in the federal Terrorism Risk Insurance Program Reauthorization Act, as well as to enhance its current standalone terrorism property policies, the statement notes.
Beyond providing standard property damage coverage, the active assailant coverage also offers coverage for time element, including a determination by authorities that the insured’s operations have to cease at their current location.
In addition, the new endorsement provides “enhanced extra expense coverage, which may include expenditures related to public relations assistance, relocation, counselling and/or psychiatric care, medical expenses, additional security and job retraining,” XL Catlin reports.
“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,” says Ben Tucker, XL Catlin’s head of U.S. terrorism and political violence.
To deal with the evolving risk environment, “they are taking additional precautions and are looking for more financial protection to properly handle such events,” Tucker reports.
“This product helps businesses and public entities mitigate the financial and reputational risks associated with an active assailant event, which do not have to be necessarily ideological, political or religiously motivated terrorism events, but can be premeditated physical attacks,” he adds.