War exclusion clause
Insurance policy clause
From Wikipedia, the free encyclopedia
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]
