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Risks of terrorism: takes cover

By: Contributor(s): Series: CSM ; November & December 2001, 33(1)Publication details: 2001Subject(s): Summary: The cost of insurance is likely to rise after the events of 11 September and premiums for terrorism cover are also likely to increase substantially. There are two kinds of terrorism risk, direct physical damage or indirect delay and disruption to the works. Insurance policies normally cover terrorist damage but not disruption. Here the contractor is very vulnerable to very heavy costs and the employer will also be exposed to the loss of the liquidated damages. If a party required to insure decides to economise by excluding it can be seen that this could seriously jeopardise a project and affect the financial wellbeing of the parties.
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Journal article London Journal article ABS64915 (Browse shelf(Opens below)) 1 Available 116118-1001

The cost of insurance is likely to rise after the events of 11 September and premiums for terrorism cover are also likely to increase substantially. There are two kinds of terrorism risk, direct physical damage or indirect delay and disruption to the works. Insurance policies normally cover terrorist damage but not disruption. Here the contractor is very vulnerable to very heavy costs and the employer will also be exposed to the loss of the liquidated damages. If a party required to insure decides to economise by excluding it can be seen that this could seriously jeopardise a project and affect the financial wellbeing of the parties.