Definitions for "War Risk Insurance"
Marine insurance coverage for loss of goods resulting from any act of war.
Insurance issued by marine underwriters against war-like operations specifically described in the policy. In former times, war risk insurance was taken out only in times of war, but currently many exporters cover most of their shipments with war risk insurance as a protection against losses from derelict torpedoes and floating mines placed during former wars, and also as a safeguard against unforeseen warlike developments. In the U.S.A., war risk insurance is written in a separate policy from the ordinary marine insurance; it is desirable to take out both policies with the same underwriter in order to avoid the ill effects of a possible dispute between underwriters as to the cause (marine peril or war peril) of a given loss.
Insurance against loss or damage to property due to the acts of enemies at war with us. This coverage is freely written on marine risks, but not on property on land. During World War II, the government assumed, for a premium, war risks on land and the program was handled by insurers on the government’s behalf and participated in by them. In Europe, the government paid for such damage.