In 2007, Congress extended the Terrorism Risk Insurance Act, which was first introduced in 2002 in response to the concern of subsequent attacks after 9/11, for seven years. So although the federal backstop that complements the private insurance market for terrorism insurance will be around in its current form until at least 2014, this risk is still one that many feel needs to be better addressed by insurers.

Enter a new product from specialty insurer Hiscox. The company’s press release introducing its new health care terrorism liability coverage calls hospitals soft targets for terrorists to attack “due to their relatively low level of protection, a high throughput of people, and the knock-on effect that one successful attack could have on the entire U.S. health-care system.” The policy offers million in liability (including evacuation costs, surge costs, safe notification expense, and triage costs) with nuclear, chemical, biological and radiation attack coverage also available.

Ian Thompson, senior vice president for Hiscox’s health-care business, says that is the first terrorism liability for U.S. health-care companies, which “have a genuine vulnerability to the terrorist threat whether perpetrated by single issue, direct action groups such as animal rights or anti-abortion organisations, disturbed/disgruntled individuals, or religious extremists.”