This is an important insurance update regarding Commercial Property and Terrorism coverage…

A recent article in the Insurance Journal discusses the aftermath of the Christmas Day car bomb in Nashville. Read Story

The FBI investigation is assessing whether this is going to be deemed as a “domestic terrorist” act. This has critical ramifications for commercial insurance.

Explosion is a covered peril on Commercial Property policies. At first glance, businesses and property impacted by this car bomb explosion would be covered by a standard policy. This glance has turned into an uncomfortable stare.

If this explosion becomes classified as “domestic terrorism,” the damages could be excluded under a policy that does not include the Terrorism Risk Act (TRIA) of 2002. Any businesses without TRIA could be left uncovered.

Here’s what you need to know:

  • TRIA is not an automatic endorsement on all insurance policies. In most cases, it must be accepted or rejected in writing, with an additional premium paid for it.
  • Business Owner Policies (BOPs) often include TRIA at no charge. That being said, it should not be taken for granted as every insurance company is different.
  • It’s not been uncommon to reject this coverage over the years. In this country, outside of September 11, 2001, most businesses have not considered this peril to be a direct concern and have not been willing to pay the extra premium.

Here’s the deal: This is no longer something to overlook. If you have a business property exposure (building or business personal property), you need to consider including TRIA coverage as part of your insurance program. There is growing concern of more violence and rioting in the coming weeks that could lead to property damage.

My recommendation is that you check your policy to assure it’s in place. For our clients, we are doing a full review of each policy to assure we are having that conversation. If you have questions, I’m happy to talk with you. Call me at (360) 271-1592 or email me at [email protected]. Additionally, you can schedule a 15-minute call with me at

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