Is Political Violence & Terrorism on Your Renewal Checklist?

With Kenya’s General Election scheduled for 10 August 2027, now is a good time for businesses to review whether their insurance provides adequate protection against Political Violence & Terrorism (PV&T).

For many years, Political Violence & Terrorism risks have generally been excluded from standard Kenyan insurance policies. Businesses requiring this protection therefore need to arrange specific PV&T cover.

But one of the questions we are frequently asked is: what constitutes political violence?

The answer is not always straightforward.

Consider a crowd passing your premises. If individuals opportunistically damage the property, the loss may potentially fall under malicious damage, depending on the circumstances and wording of your policy.

But what happens if the same crowd is carrying political banners, chanting political messages or participating in a politically motivated protest?

The position can become considerably less clear.

Recent demonstrations in both Kenya and Tanzania have highlighted this issue precisely. Depending on the circumstances surrounding an incident and the applicable policy wording, damage arising from civil unrest or politically motivated activity may be treated as political violence rather than ordinary malicious damage.

And that distinction matters.

Ultimately, the classification of an incident will depend on the facts, the policy wording and the insurer’s assessment. While, as your broker, JW Seagon will always advocate strongly on your behalf, the safest approach is to ensure the appropriate cover is in place before an incident occurs.

Should you buy PV&T cover now or wait?

With Kenya now less than a year away from the 2027 General Election, we are increasingly being asked whether businesses should purchase PV&T cover now or wait until closer to the election.

There is no universal answer.

At present, market rates remain relatively favourable. However, PV&T pricing, capacity, deductibles and policy terms can change as insurers and reinsurers reassess their exposure.

Changes could happen relatively quickly, at the January reinsurance renewal cycle, or potentially not at all.

For businesses with significant property, stock or business interruption exposures, however, waiting until political risk is visibly increasing may reduce your options.

Our advice is therefore simple: review your exposure early, understand the available protection and make an informed decision rather than waiting until the risk is on your doorstep.

Don’t overlook the wording

Having PV&T insurance is only part of the equation.

There are several recognised PV&T wordings available in the market, supported by major international insurance and reinsurance markets. Importantly, they are not all the same.

Definitions, exclusions, extensions, limits and deductibles can differ considerably.

One area businesses should pay particular attention to is looting.

During periods of civil unrest, the greatest financial loss may not necessarily arise from protesters directly damaging property. Businesses can also be exposed to opportunistic theft and looting occurring alongside demonstrations or rallies.

Yet some PV&T policies may restrict or exclude losses arising from looting.

That creates the possibility of a business believing it is adequately insured, only to discover after an event that an important element of its exposure is not covered.

Check the wording, not just the certificate.

JWS is strengthening the protection available to our clients

At JW Seagon, we are currently reviewing our clients’ PV&T protection and will shortly be introducing a bespoke JWS PV&T solution, designed to provide broader protection against the risks businesses may face during periods of political and civil unrest.

While pricing will continue to be influenced by insurer and reinsurance market conditions, our focus is on the part where we can make a meaningful difference: the quality and breadth of the protection you purchase.

Three questions to ask now

Do we currently have Political Violence & Terrorism cover?
Does our wording adequately protect our property, stock and business interruption exposures – including the risk of looting?
Should we secure or review our cover now rather than waiting until closer to the 2027 election?

If you are unsure about any of the above, speak to your dedicated JW Seagon Account Handler or simply email pink@jwseagon.com. We would be happy to review your existing cover and wording and identify any potential gaps.

The right time to discover a gap in your insurance is before a loss – not after one.