Federal Terrorism Bill Renewed, But We Still Need to Be Careful
At the worst possible time, it looked as though the federal backstop to terrorism insurance (TRIA) might not be renewed. Since then, the renewal bill passed congress and was signed into law.
Avoiding Market Instability
Nonrenewal of TRIA would have dried up the private market for terrorism insurance. Additionally, policyholders’ terrorism coverage may have been terminated due to sunset clauses.
Quality Still Required
Even with TRIA, the quality of terrorism coverage still needs to be monitored. Terrorism coverage is broken down into “certified” and “non-certified”. If you have “terrorism insurance”, you may have one or the other, or both. It does make a big difference. For example, the Boston Marathon bombing was never “certified”. It is much more complex than your insurance proposal may indicate.
We will discuss TRIA, among other subjects, at the Risk Advisory Breakfast on Thursday, January 29.
Jan 22, 2015