How should insureds prioritize terrorism insurance in 2021?

Law enforcement officials have not yet determined whether the Christmas Day bombing in Nashville will be designated as an act of terrorism. Such a designation could impact how the event is insured. (Photo: Associated Press)

As the rollout of different COVID-19 vaccines provides a glimmer of hope, 2021 is still likely to be an incredibly challenging year. The pandemic has generated tremendous economic and political uncertainty, which has long been the breeding ground for disaffection and radicalization. Even as life regains some degree of normality, there is the very real possibility of a resurgence in terrorism attacks of various kinds, by both groups and individuals driven by different motivating factors.

So as brokers review clients’ cover over the coming months, should terrorism cover be moved higher up the agenda? In a hardening market, it’s important that businesses and the brokers helping them with their insurance needs understand the different options available to them to ensure they spend valuable budget wisely.