The International Olympic Committee (IOC) has taken out a $232 million insurance policy against the Athens Olympic Games being cancelled. 

The policy, thought to be underwritten by Lloyd’s, covers terrorism, earthquake, flooding and landslides but not the construction delays which are threatening the Games.

Australian IOC member Kevin Gosper says the policy is not because it expects a terrorist attack. He said the issue had been on the agenda for two years and reflected the desire of the IOC to protect Olympic funds.

IOC President Jacques Rogge said taking out a policy to manage the risk associated with the business “is standard, prudent behaviour for any modern organisation”.