Travelers Insurance, Is Terrorism Covered?

Most trip cancellation or interruption travel insurance includes “terrorism” as a “covered reason” for benefits when you might want to cancel or change a trip to a destination that suffers an attack. However, whether and how insurance covers you for terrorism depends on the insurance policy’s fine print: How the insurer defines “terrorism,” and what kind of “terrorism” event triggers coverage. These crucial details can vary from policy to policy.

Several companies define terrorism simply as “an incident deemed an act of terrorism by the U.S. Department of State” or rough equivalent. But other companies modify that with extra requirements.

Many policies require that the terrorism event is committed by “a person acting alone or in association with other persons on behalf of or in connection with any organization of foreign government which is generally recognized as having the intent to overthrow or influence the control of any other foreign government.”

Many travel insurance policies specifically require a State Department official warning for American travelers not to travel to the destination country or city suffering a terrorist attack.

Some policies exclude “civil disorder or unrest.” Some require that the terrorism event results in loss of life or major property damage in order to be eligible for travel insurance coverage.

In any case, make sure you read the fine print and ask specific questions.