A separate, specialty insurance policy that covers loss due to terrorism. The
vast majority of stand-alone terrorism policies are property policies that
cover loss resulting from damage to the insured's own property. Stand-alone
terrorism coverage contrasts with terrorism coverage provided as part of a
commercial property policy covering other risks of loss. It is purchased
primarily by organizations that are viewed by insurers as being at high risk of
loss due to terrorism in one of the following situations: when terrorism
coverage is not available as part of the commercial property policy, when the
price of terrorism coverage from the insurer providing the commercial property
policy is too high, or when the terrorism coverage offered by the insurer
providing the commercial property policy is too narrow.