The Mexican division of USA-based insurance brokerage firm Marsh & McClennan Companies Inc has announced it is launching a policy that will cover terrorism, organized crime and sabotage. This is the first policy of its type in a country repeatedly disrupted by drug-related violence.

Mexico’s ongoing battle with drug cartels has not often directly affected companies, however Marsh has introduced the policy in response to existing client demand.

“Customers have asked whether damages caused by organized crime are covered under their property insurance or terrorism insurance and we found that there’s a gray area and it’s not clear,” said Julian Abraham, Marsh’s deputy head in Mexico.

The new policy, launched in January to some clients, will cover up to $25 million of losses or damage related to terrorism, sabotage, organized criminal activity, violence between government and criminal organizations, or violence between criminal gangs.

“Since January we’ve had quite a few requests for pricing and interest in contracting the coverage,” Abraham said.

Last year, warehouses and trucks belonging to PepsiCo Inc’s Sabritas brand in Guanajuato state were attacked by a gang known as the Knights Templar, an offshoot of the La Familia cartel in western Mexico.

Close to 70,000 people died in drug-related killings during the six-year administration of former president Felipe Calderon. Calderon launched a military offensive against the cartels shortly after taking office in December 2006.

More than 5,000 people have died in the violence since President Enrique Pena Nieto replaced him. Pena Nieto has pledged to significantly reduce the killings, but has yet to give details on his plans.

Get access to Latin America’s top 100 Insurance firms with Latin Target