View this article online: https://www.claimsjournal.com/news/international/2007/06/21/80989.htm
Arthur J. Gallagher (UK) Limited in conjunction with MAP, a specialist insurer at Lloyd’s, has launched an insurance facility for terrorism liability. The new product aims to provide coverage for tourist and study programs in Israel and neighboring countries.
Gallagher said it had designed the coverage in response to “concerns expressed by organizations arranging tourist and study programs to Israel. Many were afraid of litigation exposure if a program participant was injured owing to acts of terrorism or war. Jury awards and defense costs can be substantial, and even an unsuccessful lawsuit can result in severe economic damage or insolvency for the organization involved.”
Tim Davies, Divisional Director at Arthur J. Gallagher (UK) described the coverage as offering “extensive protection with meaningful limits for any organization wanting to protect its assets, where students or tourists undertake travel in areas with inherent war and/or terrorism threats.”
Ben Garston, Underwriting Partner at MAP, indicated that the threats posed by “aggressive litigation coupled with the volatility of the security situation in the Middle East can leave some organizations very exposed.” He pointed out that risks of this kind are excluded by “virtually all liability insurers…effectively leaving their clients unprotected.”
Gallagher (UK) and MAP aim to fill that gap. In addition to Israeli coverage, the policy can also be extended to include Egypt and Jordan.
Liability limits are offered “up to US$50million for third party injury, third party property and defense costs, and the policy will respond to a lawsuit anywhere in the world,” the bulletin concluded.