A war exclusion clause or hostile acts exclusion is a common clause in insurance policies which excludes damage arising from a warlike act between sovereign or quasi-sovereign entities. ^{[1] [2] [3]} Insurance companies typically won't cover damages caused by war because such an event could cause damage that would be likely to bankrupt them if they had to cover it.

Example: You are not insured for: war, civil war, revolution, rebellion, insurrection, or civil strife arising therefrom or any hostile act by or against a belligerent power, capture, seizure, arrest, restraint or detainment (piracy excepted), and the consequences thereof or any attempt thereat, derelict mines, torpedoes, bombs or other derelict weapons of war ^[4]

Companies and individuals faced with a significant risk of war, such as companies located in politically unstable countries, may be able to purchase a separate war risk insurance policy. ^[5]

In the US, the Terrorism Risk Insurance Act provides a "backstop" for insurance claims related to acts of terrorism.

Issues

There are a number of possible points of contention with such a clause - in particular whether certain acts of terrorism or cyberattacks are covered. ^{[5] [6]}

References

See also

• Terrorism insurance
• Cyber insurance
• Contract adjustment board

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