Seesam has become the first Estonian insurer to offer war risk cover as an additional form of protection under its corporate property insurance. Over the coming weeks, the cover will also be rolled out to home insurance clients.

War risk insurance will help to compensate for any property damage caused by drones, missiles and other military activity in situations that otherwise tend to be excluded from standard policies.

Indrek Petter, the head of Seesam’s insurance department, says the major changes in the security situation in Europe in recent years have seen people and companies think more about how to protect their assets against unorthodox risks.

“Recent events like the drone incursions into our airspace have shown that practical solutions are now needed for risks we used to regard as more or less theoretical,” he remarked. “The likelihood of these sorts of incidents occurring is still low, but a lot of homeowners and companies are looking for greater peace of mind and broader cover in situations that standard insurance policies don’t normally include. Our war risk insurance is all about meeting that need.”

The cover, which companies can acquire from 1 July, will compensate property damage caused by drones, missiles and other military activity, as well as acts of terrorism, sabotage and other political violence.

The cover offered under Seesam’s home insurance, which will be rolled out during July, will compensate not only property damage from military activity, but also damage resulting from incursions and invasions.

“The policy doesn’t cover everything when it comes to war-related damage,” Petter added. “In international practice, private insurers generally aren’t in a position to cover losses resulting from large-scale military operations or armed conflicts. In cases like that, state-backed compensation mechanisms usually come into play.”

War risk insurance is being offered in Estonia by Seesam and in Latvia and Lithuania by Compensa. The risks covered under the insurance being offered to Estonian clients, the terms of compensation and any exclusions depend on the policy and are set out in detail in the terms and conditions of the insurance. Further information is available on the Seesam website or from our advisers.