War exclusion clause

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.

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]

• Terrorism insurance
• Cyber insurance
• Contract adjustment board

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