Filed Under:Agent Broker, Personal Lines Business

Interest in travel insurance terrorism coverage on the rise

The terrorism benefit provides cancellation coverage if a traveler is unable to take their trip due to a terrorist attack at their destination. (Photo: iStock)
The terrorism benefit provides cancellation coverage if a traveler is unable to take their trip due to a terrorist attack at their destination. (Photo: iStock)

An increase in terrorist attacks in popular destinations has led to concern among travelers visiting these locations.

Over the past three years, the number of travel insurance policies purchased with terrorism coverage has nearly quadrupled, according to sales data from the St. Petersburg, Florida-based travel insurance comparison site, Squaremouth.

More than 1 in 10 travelers search for terrorism coverage


The number of travelers searching for terrorism coverage on Squaremouth.com has increased each year since 2012.

  • In the past three years, the number of customers who have specifically searched for and purchased a policy with terrorism coverage has increased by 280 percent.
  • In the past year alone, that number has increased by 165 percent.

Traveling to popular destinations


American travelers with trips planned to Squaremouth's top 10 destinations have shown heightened interest in terrorism coverage over the past three years. Here are the 3-year growth percentages of travelers buying terrorism coverage the Squaremouth's top 10 destinations:

    1. United States (268 percent)
    2. Mexico (364 percent)
    3. Italy (242 percent)
    4. Canada (313 percent)
    5. United Kingdom (344 percent)
    6. France (351 percent)
    7. Spain (470 percent)
    8. Bahamas (290 percent)
    9. Germany (506 percent)
    10. Israel (149 percent)

Travelers going to Europe show highest concern


Over the past three years, the number of U.S. travelers searching for terrorism coverage when buying insurance for trips to top European destinations increased by 332 percent. American travelers going to Germany were the most concerned, with a 506 percent increase.

When are travelers covered by the terrorism benefit?


The terrorism benefit provides cancellation coverage if a traveler is unable to take their trip due to a terrorist attack at their destination.

In order for a traveler to be covered to cancel a trip due to terrorism, the attack must meet the following requirements:

  • It must be deemed an act of terrorism by the U.S. Department of State.
  • It must be within 7-30 days of the traveler's departure date, depending on the policy.
  • It must occur in or near a city listed on the traveler's itinerary.
  • The traveler must have purchased their policy prior to the attack.

Related: Dealing with terror

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