Terrorism Insurance: What Is It And Do You Really Need It?
Terrorism Insurance is something we hear more and more about these days. Chances are, before the terrorist attacks of 9/11, you had never heard of terrorism insurance. This is because before the attacks on the Twin Towers at the World Trade Center in New York City, terrorism insurance coverage was included in most homeowners and business owner’s insurance policies. After 9/11, insurance companies excluded terrorism coverage from these policies and made it a policy that you must purchase separately.
Terrorism Risk Insurance Act
The Terrorism Risk Insurance Act (TRIA) of 2002 was signed into law by President George W. Bush on November 26, 2002 to help ensure insurance companies have the ability to provide coverage for terrorism risks. Under the provision, there is shared private and public compensation for insured losses of acts of terrorism. The government essentially became the reinsurance company backer the standard insurance companies in case of a large-scale terrorist event with catastrophic losses. The act has been extended in 2005 and again in 2007. A single terrorist act must result in $5 in insured losses before qualifying as an act of terrorism under the TRIA provision. The current extension of this …show more content…
Also, businesses that are located where known acts of terrorism have occurred may also be required to carry terrorism insurance. When in doubt, check with your insurance agent and ask if you are legally required to carry terrorism insurance. Better yet, check with your own state’s department of insurance. If you do not know how to contact your state’s department of insurance you can go to this National Association of Insurance Commissioner’s (NAIC) link for U. S. States Departments of
Terrorism Insurance is something we hear more and more about these days. Chances are, before the terrorist attacks of 9/11, you had never heard of terrorism insurance. This is because before the attacks on the Twin Towers at the World Trade Center in New York City, terrorism insurance coverage was included in most homeowners and business owner’s insurance policies. After 9/11, insurance companies excluded terrorism coverage from these policies and made it a policy that you must purchase separately.
Terrorism Risk Insurance Act
The Terrorism Risk Insurance Act (TRIA) of 2002 was signed into law by President George W. Bush on November 26, 2002 to help ensure insurance companies have the ability to provide coverage for terrorism risks. Under the provision, there is shared private and public compensation for insured losses of acts of terrorism. The government essentially became the reinsurance company backer the standard insurance companies in case of a large-scale terrorist event with catastrophic losses. The act has been extended in 2005 and again in 2007. A single terrorist act must result in $5 in insured losses before qualifying as an act of terrorism under the TRIA provision. The current extension of this …show more content…
Also, businesses that are located where known acts of terrorism have occurred may also be required to carry terrorism insurance. When in doubt, check with your insurance agent and ask if you are legally required to carry terrorism insurance. Better yet, check with your own state’s department of insurance. If you do not know how to contact your state’s department of insurance you can go to this National Association of Insurance Commissioner’s (NAIC) link for U. S. States Departments of