Do standard casualty insurance policies for commercial properties contain routine exclusions for losses due to acts of terrorism? Have insurers made public statements to the effect that they will not pay claims of the type that must be arising from the WTC attack?

Typically there's an "act of war" exclusion. I've read that the big reinsurers are considering covering the WTC loss anyway and calling it's cause as something other than an act of war. But I've read that direct commercial insurers are now covering their backsides by specifically excluding "terrorist acts". Fodder for future litigation, no doubt.

[This message has been edited by Ken Holmes (edited 11-26-2001).]

[This message has been edited by Ken Holmes (edited 11-26-2001).]

The Wall Street Journal editorial (11/26/01)-RISKY BUSINESS, and a narticle by the CEO of AIG, Inc., discuss this very issue.