Lloyd's to Insure Agaisnt Terrorist Attacks
Feb. 05, 1991
LONDON (AP) _ Lloyd's of London said Tuesday its underwriters will offer their first protection in wartime for buildings, offices and other possible land targets of terrorist attack.
Michael Cockell, chairman of the insurance exchange's war committee, said the committee made the decision last week and it took effect immediately.
''There's been a feeling of demand for it and I think it is quite large, not least from among energy people,'' Cockell said, referring to oil platforms and other energy-related facilities.
More than 70 terrorist attacks believed related to the Persian Gulf War have been reported in the world since the conflict began Jan. 17.
Lloyd's underwriters have not covered general damage caused by war on land for more than 50 years.
Cockell said the war committee's latest decision was an attempt to clarify ''an area of doubt.''
''When there is a war on, there is a question as to whether terrorism and sabotage was caused by war,'' he said. ''There was the concern that certain people might use the war exclusion for not responding to a claim.''
Insuring planes and ships against war risks has been a speciality of Lloyd's for many years.
Rates for the new coverage will vary on the basis of the property insured, the client and the geographical area, Cockell said, and explained:
''It's a new form. It's a free market. Rates will evolve.''