Does language such “Terrorism is included” on the ACORD need to be updated to “Terrorism is included in General Liability and Umbrella”?
Terrorism coverage language listed on the ACORD
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Does language such “Terrorism is included” on the ACORD need to be updated to “Terrorism is included in General Liability and Umbrella”?
Not necessarily. The reason is because Umbrella coverage may not necessarily include terrorism coverage, but could follow form to the General Liability coverage instead. What this means is that if the GL coverage has terrorism coverage included, then the Umbrella coverage would as well (i.e., it would “follow form”). Therefore, “Terrorism is included” together with “Umbrella follows form” stated on the ACORD is acceptable language that is compliant with Freddie Mac and Fannie Mae.
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