What it does
CG 21 73 adds an exclusion for "any injury or damage" arising, directly or indirectly, out of a "certified act of terrorism". "Any injury or damage" includes bodily injury, property damage, personal and advertising injury, injury or environmental damage under any coverage part to which the endorsement applies.
Who needs it
All commercial accounts. Larger urban, hospitality, venue, healthcare and infrastructure risks pay the most attention to terrorism terms.
Key provisions and limits
- Applies to the CGL, Liquor, OCP, Pollution, Products/Completed Operations, Railroad Protective and Underground Storage Tank coverage parts.
- The form is not available in every state, because some states restrict terrorism exclusions.
- A "certified act of terrorism" is an act certified by the Secretary of the Treasury under the federal Terrorism Risk Insurance Act; the criteria in the ISO forms include insured losses over $5 million in the aggregate and a violent act committed to coerce the U.S. civilian population or influence U.S. government policy.
Quoting and selling notes
- Under TRIA, insurers must offer certified terrorism coverage; the insured can accept or reject it. Keep the signed offer and rejection forms (IL series) with the file.
- Non-certified terrorism remains covered unless another exclusion applies (see CG 21 75 for acts outside the U.S.).
Explaining terrorism options
- If the insured rejects TRIA terrorism coverage, CG 21 73 removes certified terrorism; if it accepts, forms such as CG 21 70 or CG 21 84 apply instead and a terrorism premium is charged.
- Lenders and large contracts sometimes require terrorism coverage; check before the client signs a rejection.
- Umbrella and property policies have their own terrorism endorsements; keep the elections consistent across lines.
