Beazley: US businesses say political violence risk is biggest threat
With the United States election taking place this fall, 65% of North Americans fear that this election year will impact their ability to trade internationally.
That’s according to Beazley’s 2024 Geopolitical Risk Snapshot report, which surveyed over 3,500 international business leaders and insurance business buyers. According to the report, 32% of U.S. business leaders say that political risk is their greatest business threat this year, and 25% of North Americans cited war and terrorism as their top threat.
Events that followed the 2020 election, including the Capitol Hill riot in January 2021 and the Black Lives Matter (BLM) demonstrations that followed the murder of George Floyd and death of Breonna Taylor in 2020, are still top of the mind for many businesses according to the report.
Beazley cites the Armed Conflict Location and Event Data Project (ACLED) that actively collects data on reported global political violence and protests, and ACLED’s data coverage shows that over 11,000 BLM demonstrations were held in nearly 3,000 locations across the U.S. Of those events, 94% were peaceful, and 6% involved reports of violence that included property damage and business interruption.
Research from the Texas Politics Project cited in the report shows that U.S. voters expect this year’s election to trigger further violence. Any business could be vulnerable to damage from civil commotion, and according to Beazley, the instability of the U.S. political climate emphasizes the role insurance can play for businesses looking for protection against such risks.
“History serves as a useful guide and can help our clients to identify whether they may fall victim to political violence this year. Previously, we have seen that businesses located close to government assets have been affected by rioting and political violence. While they are not the target of protestors’ anger, they are often dragged in through collateral damage. For these businesses, having the right insurance is crucial to survival in the current geopolitical climate,” said Lucy Straker, focus group leader of political violence and deadly weapons protection at Beazley, in the report.
Of those surveyed, 29% rank political violence-related damage high for 2025, and 25% say they are unprepared for this risk. Most, 70%, of international corporate leaders are concerned that the outcomes of numerous upcoming global elections will impact international operations and ability to trade. The report emphasizes that for businesses in regions of polarized political environments, opting for strikes, riots and civil commotion standalone insurance should be a priority–and time is of the essence to obtain appropriate coverage.
Specialist insurance that covers political violence damage is becoming more crucial for those at risk as businesses move away from terrorism coverage for a wider range of protection from other types of perils. Noted in the report, however, is that adequate coverage will be more difficult and expensive to purchase the later that businesses wait. They will also need to demonstrate proactive risk management to providers, according to the Beazley report.
“While we can draw up a list of high-risk elections ahead of time, we will not know what impact an election will have from a political violence perspective until it happens. While polarization is a good indicator of the likelihood of strikes, riots and civil commotion taking place, unpredictability is an inherent feature of political violence. This is why businesses must take precautions to protect themselves well in advance, whether those be physical measures or seeking insurance cover,” said Alex Hill, Beazley focus group leader of political and terrorism claims, in the report.
Beazley explains that specialty insurance, which was previously more of an afterthought, has become more about risk mitigation. This coverage provides businesses with financial security that mitigates risks and enables continued investments and innovations amid such politically violent events.
