The Threat of Terrorism – Canada’s not ready

Photo from The National Post.

The early reports cause freedom-loving people everywhere to shudder: a mid-afternoon blast at a 17-storey government building in Oslo has resulted in fatalities – and fear.

And if this turns out – as it initially appears – to be the work of terrorists, it serves as a grim reminder that every democratic nation embracing peace and justice is at risk.

But Canada is not ready – at least not financially.

Since 9/11, the U.S. and other nations have developed an economic response to terrorism.  It is a collaborative effort between insurers providing coverage, and governments supporting by way of a financial backstop.

But such does not exist in Canada.

Some commercial properties in this country have coverage purchased or re-insured through the global market.  But the vast majority of commercial structures – and almost all personal residential structures – are without coverage.

In other words, property damage by terrorists is specifically excluded under most property insurance policies written in Canada.

The Canadian government needs to initiate an immediate resolution with the insurance industry.  If Norway is vulnerable, then so are we.

Tags: claims, coverage, damage, insurance, risk, safety, terrorism