A war exclusion clause or hostile acts exclusion is a common
clause
In language, a clause is a constituent that comprises a semantic predicand (expressed or not) and a semantic predicate. A typical clause consists of a subject and a syntactic predicate, the latter typically a verb phrase composed of a verb with ...
in insurance policies which excludes damage arising from a warlike act between sovereign or quasi-sovereign entities. Insurance companies typically won't cover damages caused by war because such an event could cause damage that would be likely to bankrupt them if they had to cover it.
:Example: ''You are not insured for: war, civil war, revolution, rebellion, insurrection, or civil strife arising therefrom or any hostile act by or against a belligerent power, capture, seizure, arrest, restraint or detainment (piracy excepted), and the consequences thereof or any attempt thereat, derelict mines, torpedoes, bombs or other derelict weapons of war''
Companies and individuals faced with a significant risk of war, such as companies located in politically unstable countries, may be able to purchase a separate
war risk insurance
War risk insurance is a type of insurance which covers damage due to acts of war, including invasion, insurrection, rebellion and hijacking. Some policies also cover damage due to weapons of mass destruction. It is most commonly used in the shippin ...
policy.
[
In the US, the ]Terrorism Risk Insurance Act
The Terrorism Risk Insurance Act (TRIA) (, ) is a United States federal law signed into law by President George W. Bush on November 26, 2002. The Act created a federal "backstop" for insurance claims related to acts of terrorism. The Act "prov ...
provides a "backstop" for insurance claims related to acts of terrorism.
Issues
There are a number of possible points of contention with such a clause - in particular whether certain acts of terrorism or cyberattack
A cyberattack is any offensive maneuver that targets computer information systems, computer networks, infrastructures, or personal computer devices. An attacker is a person or process that attempts to access data, functions, or other restricted ...
s are covered.
References
See also
*Terrorism insurance
Terrorism insurance is insurance purchased by property owners to cover their potential losses and liabilities that might occur due to terrorist activities.
It is considered to be a difficult product for insurance companies, as the odds of terroris ...
*Cyber insurance
Cyber-insurance is a specialty insurance product intended to protect businesses from Internet-based risks, and more generally from risks relating to information technology infrastructure and activities. Risks of this nature are typically excluded ...
*Contract adjustment board In government contracting, a Contract Adjustment Board is a department board at the Secretariat level in the U.S. Government that deals with disputes and requests for extraordinary relief under Public Law 85-804 of Aug. 28, 1958.
In brief:
Public ...
Insurance
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