Defining Terrorism: What brokers need to know

3-minute read

What is terrorism?

We all have our own ideas, preconceptions and images of what terrorism is, but what does it really mean? James Woolerton, Managing Director at MX Special Risks, explains…

Terrorism is an evocative word, conjuring up different emotional responses for each of us. If you were to ask a room of people to define it, you’d likely get a wide variety of answers.

It’s striking, though perhaps not surprising, that there’s still no universally accepted international definition of ‘terrorism.’ The word carries complex political and emotional weight, which is why many media outlets avoid using it directly, opting instead for terms like ‘insurgent,’ ‘extremist,’ ‘militant,’ or ‘guerilla.’ As Andrew Silke notes in his book, ‘Terrorism: All That Matters’: “One man’s terrorist is another man’s freedom fighter.” This highlights two key points:

1. Perspective shapes definition – Whether an individual, group, or act is labelled as terrorism depends heavily on political, social, and personal viewpoints. There’s rarely a clear consensus.
2. Terrorism is difficult to define, even when recognised – It’s often more of an “I know it when I see it” situation, shaped by underlying, often subconscious, criteria.

Why definitions matter for insurance

For brokers and their clients, understanding how terrorism is defined is more than an intellectual exercise, it’s central to securing the right cover. Contract certainty relies on clear definitions, especially when it comes to complex risks like terrorism. Without this clarity, there’s potential for misunderstandings around what is or isn’t covered, which could leave clients exposed.

MX Special Risks provides cover for damage caused by an Act of Terrorism, extending to include non-damage business interruption and denial of access within a one-mile radius. Crucially, the definition within the policy does not depend on whether the Government or Home Office officially classifies an incident as terrorism, offering greater certainty for clients in the event of a claim.

Here’s how terrorism is defined within our policy wording:

"An Act of Terrorism means an act, including the use of force or violence, of any person or group(s) of persons, whether acting alone or on behalf of or in connection with any organisation(s), committed for political, religious or ideological purposes, including the intention to influence any government and/or to put the public in fear for such purpose."

This definition reflects the complex and evolving nature of terrorism and ensures that clients have a broad and reliable scope of cover. It should be noted that it includes ‘person’ rather than only ‘persons’, which is important when comparing definitions.

Keen to learn how Terrorism insurance could protect your clients in these uncertain times? Get in touch.

How does this compare to the general definition of terrorism?

For context, here’s how the Oxford English Dictionary defines terrorism and terrorist:

• Terrorism – The unlawful use of violence and intimidation, especially against civilians, in the pursuit of political aims.
• Terrorist – A person who uses unlawful violence and intimidation, especially against civilians, in the pursuit of political aims.

While the dictionary definition ties terrorism primarily to political aims, the MX Special Risks definition recognises that religious and ideological motives are also significant factors, ensuring that cover reflects the broader reality of modern threats.

Wondering how your clients’ needs align with this definition? Reach out to our experts.

What this  means for brokers

You have an opportunity to provide meaningful advice to clients in an area where clarity and expertise are often lacking. Understanding how terrorism is defined, and the nuances of cover available, can help you position yourself as a valuable partner, giving clients confidence that their exposure is properly addressed.

The experts at MX Special Risks have over 25 years of experience handling complex terrorism risks. If you’d like to learn more about unrivalled insurance solutions for unprecedented times, or if you have a specific client’s needs to discuss, get in touch with our team today.