What happens if I do not sign either box?

Practice varies by carrier. Some treat an unsigned form as acceptance and charge the premium, and some will not issue the policy until the form comes back. On our calls, one bar policy waited on it, so return it with the other bind documents either way.

Does terrorism coverage cover a riot or a shooting?

Only if the act is certified under the federal Act. Most violence at a business is never certified, and it is answered, or excluded, by the ordinary terms of the policy, such as the property policy’s vandalism coverage or the general liability policy’s assault and battery wording.

Can I add terrorism coverage later if I reject it now?

Usually at renewal. Adding it mid-term depends on the carrier, so decide at bind if a lender or landlord might ask.

How long does the federal program last?

Through December 31, 2027, under the 2019 reauthorization. Whether it is extended again is up to Congress, so check the disclosure at your renewal.

The owner of a commercial cleaning company in reading glasses at his office desk with a one-page insurance form and a pen, shelves of cleaning supplies behind him

Should I sign the terrorism coverage rejection form on my business insurance?

You may sign it, and many small businesses do, but decide on the price line rather than the word "terrorism". Federal law requires the insurance company to offer coverage for certified acts of terrorism and to show you what it costs; signing the rejection adds a terrorism exclusion and removes that charge. Keep the coverage if a lease, a loan or a contract requires it, or if the charge is small next to what a closed building would cost you. Either way the signed form has to come back before some policies can be issued.

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Brian Victores

Commercial Insurance Advisor

Licensed in nearly every state, working contractors and small commercial, writing general liability, workers comp and commercial auto. Runs on the principle that the best insurance experience is a boring one: straight answers, fast quotes, no surprises.

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The detail

Under the Terrorism Risk Insurance Act, each participating insurer "shall make available" coverage for insured losses from terrorism "that does not differ materially from the terms, amounts, and other coverage limitations applicable to losses arising from events other than acts of terrorism."
Terrorism Risk Insurance Act of 2002, as amended, 15 U.S.C. 6701 note (Cornell LII)
The Act makes federal payment conditional on the insurer giving "clear and conspicuous disclosure to the policyholder of the premium charged for insured losses covered by the Program and the Federal share."
Terrorism Risk Insurance Act of 2002, as amended, 15 U.S.C. 6701 note (Cornell LII)
An act of terrorism under the Act must be certified by the Secretary of the Treasury, in consultation with the Secretary of Homeland Security and the Attorney General, as a violent act or an act dangerous to human life, property or infrastructure that resulted in damage within the United States and was committed to coerce the civilian population or influence the policy or conduct of the government.
Terrorism Risk Insurance Act of 2002, as amended, 15 U.S.C. 6701 note (Cornell LII)
No act may be certified if the property and casualty insurance losses it caused total $5,000,000 or less, or if it was committed in the course of a war declared by Congress, except for workers compensation coverage.
Terrorism Risk Insurance Act of 2002, as amended, 15 U.S.C. 6701 note (Cornell LII)
Federal payments begin only after aggregate industry insured losses exceed $200,000,000 in a year, and each insurer first pays a deductible of 20 percent of its prior year direct earned premium, with the federal share of losses above it at 80 percent.
Terrorism Risk Insurance Act of 2002, as amended, 15 U.S.C. 6701 note (Cornell LII)
The 2019 reauthorization extended the Terrorism Risk Insurance Program through December 31, 2027.
U.S. Department of the Treasury, Terrorism Risk Insurance Program
On our calls between August and October 2026, one bar placement could not finish binding until the signed terrorism form came back, and a commercial cleaning company asked for its general liability and excess proposal to be re-sent with the terrorism charge removed, at about $30,300 a year.
Boring Insurance call records, calls from Aug to Oct 2026 (clients and carriers unnamed)

What this means for you

Find the terrorism charge on the quote before you decide. The law requires it to be shown separately, so it is a line you can read. On a small property or liability policy it is often a modest share of the total, and on a large excess policy it can be more.
Check your lease, your loan and your contracts first. A lender or a landlord may require terrorism coverage on the building, and a rejected form cannot be fixed after a loss. If a document names it, keep it.
Know what rejecting it changes. Rejection adds an exclusion for certified acts of terrorism. A certified act has to cause more than $5,000,000 of insured losses and be certified by the Treasury, so a local act of violence that is never certified is not excluded by it.
Workers comp cannot opt out the same way. State workers comp laws pay an injured employee whatever caused the injury, and the Act’s war exception does not apply to workers comp, so the rejection form is a property and liability decision.

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Reading about it and having it handled are different jobs, and the second one is ours. We place the accounts other brokers decline — claims history, a cancellation, an unusual operation, a business nobody wants to underwrite twice — and we will tell you when the policy you already have is the right one. Tell us the situation and a licensed human replies the same business day.