A provision found in nearly all insurance policies that excludes loss arising
out of war or warlike actions. The loss can result from either declared or
undeclared war but must be related to actions of a military force directed by a
sovereign power. Prior to the September 11, 2001, terrorist attacks, the war
exclusions in most liability insurance policies applied only with respect to
contractually assumed liability, on the theory that private persons and
organizations could not otherwise incur liability in connection with war.
Following the September 11, 2001, terrorist attacks, "war and
terrorism" exclusions that broadened the war portion of the exclusion
beyond contractually assumed liability were quickly added to liability
policies. That broadened war exclusion is now standard, regardless of whether
terrorism is insured or excluded in the policy.