War risk insurance is a type of policy designed to cover losses from events such as war, invasions, insurrections, riots, strikes, and terrorism. As severe risks to property, life, and normal business operations are associated with these situations, many insurers do not provide coverage in their standard policies. As such, war risk insurance offers tailored coverage in order to protect people, businesses, and organizations that operate in high-risk countries.

War risk insurance policies are specifically written on an individual basis, taking into consideration the location, the types of war risks present in the region, such as civil wars or terrorist groups, and the nature of the operations conducted by the policyholder. War risk insurance provides coverage for property damage resulting from war risks, as well as other facets of normal business operations that could be disrupted. This could include income loss or damage to personnel or physical assets due to war-related events.

War risk insurance can also provide protection for both employer and employee alike in the event of injury, death, or other losses related to war-related activities. It may also include the cost of repatriation of personnel in the event of an evacuation from the danger zone. Additionally, war risk insurance can be extended beyond those directly associated with the policyholder to include customers, contractors, and other third parties affected by war-related damages.

Underwriting war risk policies can be a tricky process as the risks associated with these events cannot be accurately predicted. As a result, insurance companies must take a variety of factors into consideration, such as the political and geopolitical situation in a certain region and the likelihood of certain situations occurring, in order to determine the appropriate premiums and coverage.

Due to the often volatile nature of war-risk regions, some areas may be uninsurable or subject to excluded war risks when determining coverage levels. War risk insurance often falls under the jurisdiction of specialized underwriters and insurers, who are better able to analyze and assess the risks involved with offering coverage.

Overall, war risk insurance provides vital protection to those operating in volatile regions, giving them the peace of mind of knowing that their businesses, personnel, and assets are protected from war-related events. Although these policies carry the risk of significant losses, the protection they offer makes them invaluable to many organizations.