Political Violence

 

Political Violence insurance aims to protect property against material damage and financial losses resulting from political violence, including acts of terrorism, civil unrest, and political destabilisation. The insurance covers property belonging to the insured or under their custody. The coverage may also be extended to include Business Interruption insurance, encompassing gross profit and fixed costs incurred by the insured.

 

The coverage includes damage resulting directly from acts of terrorism, sabotage, riots, strikes, demonstrations, and civil unrest, as well as malicious damage to property motivated by political factors. It may also cover losses resulting from actions such as rebellions, uprisings, revolutions, and other forms bof large-scale organized unrest. In selected cases, the insurance may be extended to include the consequences of war or civil war, provided this is explicitly stated in the policy.

 

In recent months, we have observed a shift in political and social risks. Typical acts of terrorism are increasingly being replaced by dispersed political violence, sabotage, and large-scale riots (SRCC). Losses arising from civil unrest, sabotage, and politically motivated attacks are becoming a significant component of property exposure.

 

Recently, demand for stand-alone PV policies and SRCC extensions in property policies has increased. Inquiries come primarily from infrastructure, manufacturing, energy, and logistics entities. Interest in coverage has grown due to the rising number of sabotage-related incidents, cyberattacks, and the proximity of wartime activities in Ukraine.

 

MJM Holdings is a market leader in developing this type of coverage in Poland, with extensive experience in arranging insurance and reinsurance solutions for Political Violence risks, including a PLN 2 billion limit for one of Poland’s key strategic companies.