Liberty Specialty Markets (LSM), part of Liberty Mutual Insurance Group, has launched a new, broader form of terrorism insurance coverage in the German market.
Since LSM entered the market in 2018, business written used the standard London Market cover. The new terrorism coverage has been developed specifically for the SME sector in Germany.
The new coverage is comparable to Allgemeine Terror Bedingungen (ATB), the standard terrorism cover in the German market.
In addition, LSM offers a range of optional covers: non-damage business interruption and a Strikes, Riots and Civil Commotion Clause (SRCC). This offers cover for physical loss or damage directly caused by strikers, locked-out workers, participation in labour disruption, and various types of riots.
Corinna Walter, LSM terrorism underwriter, said: “We have been successful in building a portfolio of middle market Terrorism insurance business in Germany. We saw the value in having a contract easily comparable to those of our peers as well as the state guarantee. Contract certainty for our clients is a priority for LSM, this has been a key initiative for us to introduce.
“As witnessed recently in Austria, the ‘lone wolf’ style nature of attacks are becoming less sophisticated. As a result of the changing risk landscape, we have reviewed our offer to provide our clients with additional protection. Our new definition of terrorism is broader, as events do not need to be certified as terrorism by the German state in order to make a valid claim.”
LSM entered the German war and terrorism market in 2018 as part of its strategy to extend its reach in Europe. Its German book of war and terrorism business is split between multi-nationals with worldwide exposure and domestic SME business.