Paris attacks highlight the potential value of adequate insurance coverage
In the wake of the November 13 attacks in Paris, France, the demand for terrorism insurance may grow. Several businesses have struggled to recover following the attack, which left Paris in a state of emergency, and these businesses may be able to find some solace through the claims they issue to their insurance providers. They may also find some support through a special state-backed fund that was established in France in 2011.
Terrorist attacks are becoming a major concern for businesses
The attacks in Paris highlighted a major issue that is becoming a significant concern for those traveling throughout the world. This issue is, of course, a major problem for businesses as well. The problems that terrorism represents has left many seeking protection through terrorism insurance coverage. In France, the demand for this type of coverage has grown considerably, with hotels, department stores, and entertainment venues seeking out this coverage in order to protect themselves from financial losses in the future.
Terrorism insurance allows businesses some degree of security against the impact of terrorist activities
Terrorism insurance is a type of coverage that is typically purchased by business and property owners. This coverage is designed to protect against the potential losses and liabilities that are associated with terrorist activities. For insurers, this type of coverage represents a complex problem, which is somewhat similar to the risks they face when providing protection against natural disasters. The majority of insurers do not offer terrorism insurance coverage through their conventional policies, but this may change in the near future, as demand for this coverage begins to grow quickly.
Terrorism is often considered to be similar to natural disasters
Insurers typically use a modeling process to determine terrorism liability that is similar to the modeling process they use to determine natural disaster risks. Terrorist activities could have a more severe impact, however, as such activities tend to be much more concentrated than natural disasters. Terrorism insurance could allow businesses to overcome certain risks and survive in the event of an unexpected attack.
