(Bloomberg) -- American International Group Inc. lifted limits on property claims tied to acts of terrorism to $1 billion as clients ask for more protection in larger cities.
The previous limit was $250 million, New York-based AIG said Wednesday in a statement. Protection can be purchased alone or as part of a larger, $2.5 billion property-insurance policy that provides coverage for a broader array of risks.
|Demand for better protection
“Demand from our clients for better protection against this risk has been strong,” George Stratts, AIG’s president of property and specialty risks, said in the statement. The coverage is intended to “respond to terrorist attacks worldwide.”
Terrorist events have spurred demand for coverage for property damage, cyber attacks or injuries to employees, and about 60 percent of U.S. businesses buy policies against such risks, according to the Insurance Information Institute. Corporations can obtain terrorism insurance limits of more than $1 billion at Lloyd’s of London and National Fire & Marine Insurance Co., a division of Warren Buffett’s Berkshire Hathaway Inc., insurance broker Marsh & McLennan Cos. said in a July report.
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