Lithuanian insurance companies consider covering terrorism risk

A series of terrorist attacks in Europe has made Lithuanian insurance companies think of offering insurance against terrorism risks to their clients, although very few of them currently do.

The insurance company If says that damage caused by acts of terror is currently covered under its standard travel insurance policy, although not one of its clients has yet claimed it.

However, other insurance companies in Lithuania do not cover such risks.

“Damage to clients’ property or health caused by such an even [act of terrorism] would not be covered,” says Eugenijus Mažiulis of Seesam Insurance Lithuanian branch.

He adds, however, that the company is considering to include terrorism into its policies, although there has been little interest from clients.

Darius Bivainis, of Ergo Insurance, agrees that insuring against terrorist attacks has so far been a topic of discussion among insurers themselves.

“Right now, interest in travel insurance policies that would cover terrorism is very small, so our company does not offer insurance against these risks. We are closely monitoring the market and clients’ needs, so if there were more clients interested in insuring against terrorist acts during their trips, we would start offering the service,” Bivainis tells BNS.

Meanwhile Andrius Gimbickas of Lietuvos Draudimas says that acts of terrorism are usually treated as a non-insurable risk, much like strikes and mass unrest as well as war actions.

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