Marine and political risk insurance
Political violence insurance: what it covers and how the market looks
Political violence insurance covers property damage and business interruption from terrorism, strikes, riots, civil commotion and war. What to check in 2026.
Guide
Marine and political risk insuranceLast updated
3 minute read
By Zed Three analysts
Short answer
Political violence insurance covers physical damage and business interruption caused by terrorism, sabotage, strikes, riots and civil commotion, insurrection, revolution and war. Many standard property policies exclude or limit these perils, so companies with assets in unstable markets often buy standalone cover, much of it from the Lloyd's market.
Last updated
Levels of cover
Buyers can choose narrow terrorism and sabotage cover or a full political violence package that adds strikes, riots and civil commotion, malicious damage, insurrection, coup and war. Business interruption and denial of access cover can usually be added.
The market in 2026
The market is split. Lockton reports average rates for strikes, riots and civil commotion cover down about 8%, with larger cuts for some Latin American and South African risks, while Middle East terms have tightened sharply since the Iran war. Political violence reinsurance also tightened at the July 1 renewal.
What to check in your policy
How the policy defines each peril, the hours clause that groups events into one loss, deductibles, business interruption waiting periods and whether war between major powers is excluded.
What happens next?
We assess it is likely that Middle East political violence terms stay tight into 2027 renewals.
We assess it is likely that terms for most other regions stay flat or soften slightly over the next 6 months.
Likelihood ranges are Zed Three editorial judgments as of Nov 2, 2026, not advice.
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Frequently asked questions
Does property insurance cover riots?
Often only partly or not at all, especially in high risk countries. Strikes, riots and civil commotion cover is commonly bought separately.
Is terrorism insurance the same as political violence insurance?
No. Terrorism cover is narrower; political violence cover adds riots, civil unrest, insurrection and war.
Who needs political violence insurance?
Companies with plants, warehouses, mines, stores or offices in countries with unrest, conflict or terrorism risk.
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