Recent increases in violent incidents across the United States have highlighted ongoing challenges in how domestic terrorism is defined and insured. As businesses face growing risks and unclear legal ground, leaders in the insurance industry are looking closely at how coverage is changing.
Chris Kirby, president of Starwind Specialty’s political violence and terrorism program, has been watching these developments closely. He points out that although many violent acts meet the definition of domestic terrorism, the U.S. federal government still does not have a criminal law that specifically charges people with domestic terrorism. For example, in the 1995 Oklahoma City bombing, Timothy McVeigh was not charged with terrorism but with other serious crimes like the use of a weapon of mass destruction and multiple murders.
Kirby also notes that the threat has grown stronger over time. Between 2001 and 2021, over 540 domestic terrorism incidents were reported in the U.S., and federal investigations into these activities have increased by 357% in the last ten years.
This rise in violence is putting pressure on casualty insurers, especially due to large court awards linked to Assault & Battery claims. Companies such as apartment complexes, bars, hospitals, and stores have been held liable when violence has led to injury or death involving customers, workers, or bystanders. In some cases, even family members of those responsible have won multimillion-dollar settlements.
Because of this, many insurers have started to exclude Assault & Battery from General Liability coverage. Yet lenders often require policies to include this coverage without limits, making it harder for businesses to secure insurance.
Some companies have turned to the Terrorism Risk Insurance Act (TRIA) for help. TRIA provides coverage for certain terrorism events but requires the federal government to officially declare an incident as terrorism before it applies. This certification rarely includes domestic violence, leaving a gap for many businesses.
Kirby explains that many companies now face organized opposition tied to political, ideological, or religious reasons. While free speech is protected, when protests turn violent, companies can face lawsuits. Since such acts are not legally seen as terrorism, businesses don’t receive protection under TRIA or General Liability policies, opening them up to risk.
One way to address this is through private-market terrorism insurance. Unlike TRIA, these policies cover both domestic and international terrorism without needing government approval. This means claims can be paid more quickly, and General Liability coverage stays intact.
Kirby warns that relying only on traditional insurance may not be enough anymore. In today’s divided social climate, legal actions around violence and negligence are becoming more frequent. He believes private terrorism insurance offers clearer protection and faster responses, giving businesses more confidence in uncertain times.
As domestic violence incidents rise and the legal landscape remains unsettled, insurance options are evolving. Companies looking to protect themselves should consider the changing environment carefully and explore solutions beyond standard policies.