Shuman Roy is an entrepreneur, business owner, and musician. He started RoysNoys, LLC in 2013 as a music production and education service company. He also offers small business consulting and advisory services to help businesses get from start-up mode to turn-key operations. Shuman earned his M.B.A from the Stern School of Business in 2001 and has an undergraduate degree from Manhattan College in ...

Full Bio →

Written by

Joel Ohman is the CEO of a private equity-backed digital media company. He is a CERTIFIED FINANCIAL PLANNER™, author, angel investor, and serial entrepreneur who loves creating new things, whether books or businesses. He has also previously served as the founder and resident CFP® of a national insurance agency, Real Time Health Quotes. He has an MBA from the University of South Florida. Joel...

Full Bio →

Reviewed by Joel Ohman
Founder, CFP®

UPDATED: Jul 19, 2021

Advertiser Disclosure

It’s all about you. We want to help you make the right coverage choices.

Advertiser Disclosure: We strive to help you make confident insurance decisions. Comparison shopping should be easy. We are not affiliated with any one insurance provider and cannot guarantee quotes from any single provider. Our insurance industry partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different companies please enter your ZIP code on this page to use the free quote tool. The more quotes you compare, the more chances to save.

Editorial Guidelines: We are a free online resource for anyone interested in learning more about life insurance. Our goal is to be an objective, third-party resource for everything life insurance related. We update our site regularly, and all content is reviewed by life insurance experts.


After the killing of Osama bin Laden over the weekend, interest in “terrorism insurance” has risen considerably.

In fact, the U.S. State Department warned of “enhanced potential for anti-American violence,” the Insurance Information Institute said this week in a press release.

The III noted that before the September 11th attacks, terrorism exclusions were “virtually nonexistent” on commercial insurance policies sold stateside.

In other words, if your business came under attack, you would have likely been covered.

But we all know the world changed that day, and shortly after, insurance companies took measures to exclude terrorism coverage from their commercial U.S. policies.

Fortunately, the Terrorism Risk Insurance Act (TRIA), enacted in November 2002, established a public/private risk-sharing partnership in which the federal government and the insurance industry agreed to split losses in the event of a major terrorist attack.

The current TRIA law extends through December 2014.

Terrorism Coverage is Mandatory…Kind Of

It is mandatory for insurance companies to offer terrorism coverage on commercial property insurance policies…the government forces them to do so.

But it IS NOT mandatory to purchase this coverage.

When you receive a premium quote for commercial insurance, you will get two insurance premium options. One with TRIA coverage and one without.

Compare Quotes From Top Companies and Save

 Secured with SHA-256 Encryption

What Can’t Be Covered by Terrorism Insurance?

The Fed’s “carved out” a few types of insurance they will not cover. Here’s the list:

– Federal and Private Crop Insurance
– Livestock Insurance
Private Mortgage Insurance
– Title Insurance
– Financial Guaranty Insurance of single-line guaranty insurers
– Medical Malpractice Insurance
Flood Insurance
– Reinsurance
– All Types of Life Insurance

Note that insurers are solely responsible for terrorism losses on non-TRIA lines of insurance, such as private passenger auto and homeowners insurance, along with group life insurance.

Contact your insurance company or independent insurance agent to see when and if you’re covered in the event of a terrorist act.

The September 11th terrorist attack was the largest loss in global insurance history, with property/casualty insurance and reinsurance companies recording a staggering $32.5 billion in losses.

Property, business interruption, aviation, workers compensation, life and liability insurance claims were all paid out as a result.