Terrorism Insured A German View
After September 11th 2001, German insurers excluded terrorism risks from the standard insurance coverage in particular under property insurances as well as under business interruption insurances. However, they developed a new approach: to the extent of a total sum insured of EUR 25 million, the insurers offer to include coverage for terrorism risks. If the total sum insured exceeds EUR 25 million, insurance coverage for terrorism risks may only be obtained from the specialist insurer EXTREMUS. In this context, two major issues are in the centre of our practice: contractual exclusion of terrorism risks, and providing suitable insurance of terrorism risks.
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Contractual exclusion of terrorism risks
The effective exclusion of terrorism risks requires careful and precise drafting of the respective insurance wordings. It is of utmost importance that the wordings clearly reflect the extent of the exclusion so it cannot be construed in a way that...
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