Specialty · Insurance Term
Terrorism Insurance (TRIA)
Definition
Terrorism insurance covers losses from acts of terrorism, which many commercial policies would otherwise exclude. Under a federal program created by the Terrorism Risk Insurance Act (TRIA), insurers must make coverage for certified acts of terrorism available, and you choose whether to buy it. The program currently runs through December 31, 2027.
In Plain English
When you get a commercial property insurance quote, you will often see a separate terrorism offer and a form to accept or reject it. If you reject it, the policy usually adds a terrorism exclusion.
The federal government shares large losses with insurers under the program, which helps keep the coverage available. A certified act is one the federal government officially designates under the law.
Stand-alone terrorism policies also exist, for example for acts that are not certified. Many policies still exclude nuclear, biological, chemical or radiological attacks, so read the wording.
Not sure how your policy handles this? Have us review it, or get a quote.
Example
Hypothetical: a property quote of $50,000 includes a terrorism option for a separate charge. The owner's loan documents require terrorism coverage, so the owner signs the acceptance form rather than rejecting it.
What to Watch For
- Read your loan documents; many commercial lenders, including securitized lenders, require terrorism coverage.
- Sign and return the terrorism acceptance or rejection form with your binding paperwork.
- Check whether both property and liability policies include it.
- Ask how losses from uncertified acts would be handled.
Sources
Last updated October 14, 2026 · Primesure editorial team · How We Write