terrorism insurance

Insurance that indemnifies against losses sustained because of an act of terrorism.

• Terrorism insurance has been available since the 1970s; it was (and is) required for U.S. airports of almost all sizes. In the mid-1980s, terrorism insurance was offered to individuals, originally as a form of travel insurance that provided compensation for terrorism-related cancellations or changes in itinerary when traveling to or in certain countries. See TERRORISM.

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