Lloyd’s Permits Insurance Against Wartime Terrorist Attacks on Land
LONDON (AP) _ Lloyd’s of London, the world’s largest group of insurance underwriters, said Tuesday it will allow its underwriters to insure against wartime terrorist attacks on land, such as bombings of airline and bank offices.
The decision by Lloyd’s war committee was effective immediately, said committeee chairman Michael Cockell.
″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.
There have been a handful of minor Iraqi-inspired terrorist attacks around the world since the war began.
The underwriters will continue to be excluded from covering general damage caused by war on land, under a more than 50-year-old exclusion agreement between the market and British insurance companies.
The underwriters insure against terrorism against commercial aviation and shipping targets, whether there is a war or not. The market long has specialized in insuring against war risks for planes and ships.
The underwriters will be allowed to expand into the new area as long as the coverage doesn’t exceed 5 percent of a syndicate’s capacity, Lloyd’s said.
The new insurance coverage will be available in Britain and overseas, with higher risk properties, clients and geographical areas commanding higher rates, Lloyd’s said.