As defined by the US FBI, 'the unlawful use of force against persons or property to intimidate or coerce a government, the civilian population or any segment thereof, in the furtherance of political or social objectives'
Political Violence coverage is growing, and is sought mainly by clients who have bought standalone Terrorism cover in the past and feel their current Terrorism coverage is not broad enough; or, by those with exposures in developing markets (Asia, Africa, the Middle East and some parts of South America) who have refocused their concerns on country risk, Tucker says.
There remain potential gaps in coverage because some companies need to consider purchasing broader political violence insurance which, along with sabotage and terrorism, covers additional perils such as riots, strikes, civil commotion, rebellion and insurrection.
He added that seeing as current violence being witnessed in Egypt is largely the result of power struggles arising out of politics, that coverage of such violence should be included under political violence policies.
Political violence insurance protects an insured against property and income losses incurred as a result of politically charged events in the foreign country, including war, civil unrest, revolution, riots and politically motivated terrorism.