FAQ - EQUA's Exclusive Malicious Attack and Terrorism Insurance Program
August 26, 2021
Malicious Attack and Terrorism insurance are unique coverages that are not commonly considered outside of other policies. A solution that combines these two coverages to create an independent and comprehensive offering is even more uncommon.
It’s important to understand why this type of packaged insurance solution is needed for Canadian businesses, municipalities, and educational institutions. Below, we’ve answered the most frequently asked questions concerning our exclusive Packaged Malicious Attack and Terrorism Insurance program.
Why should I seek insurance coverage for both Malicious Attacks and Terrorism?
While the definition for each type of attack may seem distinct in your policy wordings, the line between the two types of attacks can become blurred when making a claim. For example, if a perpetrator’s attack is rooted in their pro-life stance – is this a political, ideological, or religious motivation? Or, is it a personal belief? What is the context behind them taking this position? Is it sufficient enough to explain their actions?
Having insurance for both Malicious Attacks and Terrorism broadens your coverage and helps to support your success should you need to make a claim.
I’m not at risk of malicious attacks or Terrorism. Why would my business need this coverage?
In recent years, the frequency of Malicious Attacks and Terrorism, both in Canada and abroad, has increased significantly. Regardless of whether or not you operate in an industry that is often targeted for these types of attacks, your business may still be vulnerable. For example, if a regional lockdown is implemented because of the threat of an attack, forcing your business to temporarily close, your coverage could trigger.
With special add-ons available and coverages priced competitively, having this coverage in your insurance portfolio makes good business sense in this increasingly volatile and polarizing political landscape.
Why is the coverage packaged? What does this mean?
Packaged coverage means that within a single, straightforward policy, you have coverage related to two distinct types of events. Without this combined policy, achieving the same degree of coverage would require purchasing multiple policies that may not work congruently. Stand-alone policies can include conflicting definitions for the same terms, and can have competing exclusions that ultimately negate coverage.
Having blended coverage ensures that your wordings work in conjunction with each other and saves you money by having everything included in a single policy – rather than purchasing and assessing the wordings for multiple policies.
What is the significance of this program being Made in Canada?
Made in Canada means that all documentation is issued and underwritten domestically. This lowers the cost of your premium, and most importantly, means that your policy wordings are suited to Canadian law, reducing the chances of misinterpretation or insufficient coverage when making a claim. These Canadian wordings resolve issues related to the use of US-made policies within Canada. As those US policies are built to account for the Terrorism Risk Insurance Program Reauthorization Act (TRIPRA) backstop, which is not available in Canada, using them within this country can leave significant gaps in coverage.
How is this program scalable to suit my unique business needs? What does this mean?
Higher limits are available in addition to the CAD $50 million per insured that is included in the program. Difference-in-Conditions is also available, meaning we can fill the gaps in your current coverage without altering your current policy, and provide excess coverage if needed.
Alternately, if you need more coverage for one peril than another, within the CAD $50 million limit, we can adjust the limit accordingly to meet your price point.
What is Threat Coverage?
The threat of a malicious attack, sabotage, or terrorism can impose financial hardships on your business. This add-on coverage helps protect you from potential costs that might be incurred, including those associated with evacuations, lockdowns, and temporary closures. The full scope of this add-on is detailed in the article linked here.
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