WMD Coverage Issues

It’s a much bigger issue than is being tackled by the industry at this point.

Sanjay Godhwani, Chartis U.S. and Canada Region

The insurance industry may provide some coverage against the threat of terrorism involving weapons of mass destruction (WMDs), but not at the same limits or at the same cost of other terrorism coverage. The insurance industry has obvious concerns about the implications of covering this exposure on a broad scale. A nuclear event, for example, will have repercussions beyond the radius of a city. It’s unclear if this is a risk the industry can insure.

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Opportunities to buy insurance that covers the risk of terrorism involving the use of nuclear, chemical or biological weapons are very limited.

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