Political violence and terrorism are often discussed in the context of physical damage. However, for businesses, the consequences can be considerably broader.
What is political violence?
Political violence can encompass a range of events depending on the insurance wording, including specified risks such as terrorism, riots, strikes, civil commotion and malicious damage.
Certain specialist policies may also provide extensions for events such as insurrection, revolution, rebellion, mutiny or coup d’état, subject to the policy wording.
Why should businesses consider the risk?
A politically motivated event can affect a business in several ways.
Physical damage
Buildings, machinery, stock and other assets may be damaged during an insured event.
Business interruption
Even when a business’s own property is not directly damaged, disruption in the surrounding environment can affect its ability to operate.
Supply chains
Transport routes, ports, infrastructure and suppliers can be affected by political instability.
Employee safety
Businesses may need to adjust working arrangements or temporarily relocate employees when conditions deteriorate.
Access
A business may be unable to access its premises or operate normally due to surrounding unrest.
Political violence is increasingly recognised as a mainstream business risk
The Allianz Risk Barometer 2026 ranked political risks and violence as the seventh biggest global business risk, its highest position to date.
Allianz’s 2026 Political Violence and Civil Unrest report also notes that businesses affected by armed conflict can face supply-chain disruption, loss of market access, cyber-attacks and sabotage.
This is important because it demonstrates that political risk does not necessarily remain within the borders of the country where the event occurs.
Where does PVT insurance fit?
Political Violence & Terrorism insurance can form part of a broader risk-management programme for businesses with relevant exposure.
The policy structure will depend on:
- Location
- Industry
- Asset values
- Occupancy
- Risk profile
- Limits required
- Existing insurance
- Applicable exclusions
- Policy wording
For larger organisations, it is particularly important to understand how existing SASRIA protection interacts with additional Political Violence & Terrorism solutions.
Insurance is not the only solution
PVT insurance is one element of risk management. Businesses should also consider:
- Crisis-management plans
- Employee safety procedures
- Business continuity
- Supply-chain diversification
- Alternative operating locations
- Communication plans
- Security assessments
The goal is not simply to transfer the risk. It is to understand and manage it.
