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WASHINGTON, D.C.—The United States Chamber of Commerce called on federal lawmakers to move forward on legislation that would ensure insurance protection for buildings and public sites targeted by terrorist attacks, warning that failure to act would place the economy at risk.  Both the House and Senate have introduced terrorism reinsurance bills and have scheduled markups of these bills today.

 

“America’s businesses must have the opportunity to obtain terrorism insurance,” said Bruce Josten, Chamber executive vice president for government affairs.  “Failure to provide an insurance backstop would open companies to exorbitant costs and devastating liability for future attacks.  We urge Congress to bring legislation to a floor vote before the end of the year so that businesses can have the protection they need.”

 

The Terrorism Risk Insurance Act of 2002, passed after the 9-11 attacks with bipartisan support, expires on December 31.  Without an effective public/private partnership that ensures the availability of comprehensive and affordable terrorism insurance for companies, commercial property developers, owners, and tenants, our economy will suffer a tremendous blow.
  
Without extending terrorism insurance protection beyond this year, the U.S. and global reinsurance industry currently does not have the capacity to provide protection against another attack, according to the Chamber.  Many reinsurers have indicated that they plan to sharply reduce or eliminate coverage on potential terror targets, such as office towers, transportation hubs, sports arenas and critical infrastructure.  Without reinsurance, primary insurers would be unable to shoulder the burden of full coverage.
 
“Consideration of this legislation is a significant step toward securing the economy against terrorism risk,” said Josten.  “If enacted, these bills would ensure that the nation's workers and businesses are able to secure adequate and affordable insurance coverage against terrorism, and that the nation has a sound policy in place to enable the economy to quickly recover should another terrorist attack occur in the United States.”

 

The U.S. Chamber of Commerce is the world’s largest business federation, representing more than three million businesses of every size, sector, and region.

 

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