As the threat from military drones and other dangers grows in Europe, insurers are introducing a new cover that standard policies have so far excluded - political conflict (political violence) insurance for businesses.
What is political violence insurance
It is a separate commercial cover that pays for damage to a company's property caused by a political conflict or related events. Standard commercial property insurance usually excludes these risks, so until now businesses had practically no way to insure against them. On the Latvian market this product is already offered, for example, by BALTA, and it can be bought as a separate contract - including by companies that are not the insurer's commercial-property clients.
What events it covers
- War and civil war
- Terrorism and sabotage
- Riots and civil commotion
- Rebellion and coup d'état
Why it matters right now
The geopolitical situation in Europe and the threat posed by military drones have increased the risk that company property may be damaged due to a political conflict or related events. Because these risks are excluded from classic policies, many businesses only find out about it once the loss has already happened and no claim is paid.
Important: the main exclusion
This insurance usually does not cover losses arising from a war between two or more world powers - the United States, the United Kingdom, France, the Russian Federation and China. That is why it is important to read the cover and exclusion terms carefully before signing.
As an independent broker, I help assess your company's risks, compare available offers and choose the most suitable cover. Get in touch and I will prepare an offer tailored to your needs.