Does My Business Need Terrorism Coverage?
Once again, the Terrorism Risk Insurance Act (TRIA) is due to expire at the end of this year. Those who want the coverage renewed argue that the government should protect its citizenry from attack, and when they aren’t successful in this endeavor that they finance any necessary recovery. After all, TRIA a direct response to 9/11 impacted multiple lines of insurance coverage. As a result, today’s Workers’ Compensation policies are automatically surcharged without a choice on the part of the purchaser.
Those against the renewal of TRIA argue that this coverage is just another means of increasing revenue for the insurance companies and in all the years since its inception it has never had to pay off! So what is so terrible about having money in the bank? Such a loss doesn’t cost very much until the day it occurs and at that point the losses are incalculable.
I guess that as a resident of New York City, I totally support the renewal of this coverage because I saw first-hand just how devastating the losses were to both individuals as well as our business community. A non-renewal of this coverage in the current economic climate seems irresponsible on the part of the government as well as the insurance industry. The exposure to loss is catastrophic and, therefore, it makes sense for the public and the private sector to have a safety measure in place without having to wait for authorities to declare a state of emergency. Students of history recognize and accept the fact that often “ history does repeat itself”. I believe that TRIA is the best investment our industry can make in support of individuals and groups alike. If you have an opinion, we’d like to hear it. Feel free to comment, we’d love to hear from you.
By Karen Skoler, CPCU
