After major attacks, standard policies often excluded or severely limited terrorism. Terrorism insurance covers physical damage, business interruption, and sometimes liability arising from acts of terrorism as defined in the policy or by statute.

In several countries government-backed programs or pools share the risk with private insurers because the potential for concentrated loss exceeds normal commercial capacity. Coverage may be limited by aggregate industry caps and may require specific certification that an event qualifies as terrorism.

Pricing reflects location, building type, and perceived threat levels. Many commercial property programs now include terrorism as a standard or optional element. Policyholders in high-profile locations treat the coverage as a core part of their risk-financing program rather than an exotic extra.

• Coverage for losses from certified terrorist acts
• Often supported by government or industry pools
• Applies to property, interruption, and sometimes liability
• Subject to specific definitions and aggregate limits