Finance:War exclusion clause
A war exclusion clause or hostile acts exclusion is a common clause in insurance policies which excludes damage arising from a warlike act between sovereign or quasi-sovereign entities.[1][2][3] Insurance companies typically will not cover damages caused by war because such an event could cause damage that would be likely to bankrupt them if they had to cover it.
- Example: You are not insured for: war, civil war, revolution, rebellion, insurrection, or civil strife arising therefrom or any hostile act by or against a belligerent power, capture, seizure, arrest, restraint or detainment (piracy excepted), and the consequences thereof or any attempt thereat, derelict mines, torpedoes, bombs or other derelict weapons of war[4]
Companies and individuals faced with a significant risk of war, such as companies located in politically unstable countries, may be able to purchase a separate war risk insurance policy.[5]
In the US, the Terrorism Risk Insurance Act provides a "backstop" for insurance claims related to acts of terrorism.
Issues
There are a number of possible points of contention with such a clause – in particular whether certain acts of terrorism or cyberattacks are covered.[5][6]
In Germany, nearly a century after the end of World War II, unexploded ordnance remains a problem. Damages caused by controlled or uncontrolled explosions from World War II-era aerial bombs are not consistently covered by private insurance policies,[7][8] although the German government covers costs for damage caused by German-made munitions.[9]
References
- ↑ Massmann, Susan (30 September 2001). "War Risk Exclusion Legal History Outlined". Property Casualty 360. https://www.propertycasualty360.com/2001/09/30/war-risk-exclusion-legal-history-outlined/?slreturn=20190324235250. Retrieved 25 April 2019.
- ↑ Menapace, Michael (10 March 2019). "Losses From Malware May Not Be Covered Due To Your Policy's Hostile Acts Exclusion". The National Law Review. https://www.natlawreview.com/article/property-insurance-cyber-insurance-coverage-and-war-losses-malware-may-not-be-0. Retrieved 25 April 2019.
- ↑ Stock, Rob (19 March 2019). "Insurers waive terrorism exclusions for Christchurch shooting victims". Stuff. https://www.stuff.co.nz/national/christchurch-shooting/111397687/insurers-waive-terrorism-exclusions-for-christchurch-shooting-victims. Retrieved 25 April 2019.
- ↑ "Policy Terms, Conditions and Exclusions". Transit NZ. https://www.vero.co.nz/documents/marine/transit-new-zealand-general-cargo-policy-wording.pdf. Retrieved 25 April 2019.
- ↑ 5.0 5.1 Kagan, Julia. "War Exclusion Clause". Investopedia. https://www.investopedia.com/terms/w/war-exclusion-clause.asp. Retrieved 25 April 2019.
- ↑ Field, Matt (18 April 2019). "Is cyberwarfare war? Insurers balk at paying for some cyberattacks". Bulletin of the Atomic Scientists. https://thebulletin.org/2019/04/is-cyberwarfare-war-insurers-balk-at-paying-for-some-cyberattacks/. Retrieved 25 April 2019.
- ↑ "'Auf die Klausel kommt es an'". Westfalen Blatt. 7 April 2018. https://www.westfalen-blatt.de/owl/kreis-paderborn/paderborn/auf-die-klausel-kommt-es-an-1311311.
- ↑ "Schaden durch Blindgänger am Haus: Zahlt die Versicherung?". Frankfurter Rundschau. 8 January 2019. https://www.fr.de/ratgeber/wohnen/schaden-durch-blindgaenger-haus-zahlt-versicherung-11064678.html.
- ↑ Higginbotham, Adam (January 2016). "There Are Still Thousands of Tons of Unexploded Bombs in Germany, Left Over From World War II". Smithsonian Magazine. https://www.smithsonianmag.com/history/seventy-years-world-war-two-thousands-tons-unexploded-bombs-germany-180957680/. "By the time we met, Dietrich had been offered scant financial compensation by the authorities—technically, the federal government was required to pay only for damage caused by German-made munitions."
See also
- Terrorism insurance
- Cyber insurance
- Contract adjustment board
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