Fed Update: National grassroots push to pass and extend Terrorism Risk Insurance Act of 2002

By CMTA Staff

Capitol Update, Aug. 26, 2005 Share this on FacebookTweet thisEmail this to a friend

We all remember the horrific devastation caused by terrorists on September 11, 2001: the tragic loss of life, staggering destruction of property, and poignant loss of America's sense of invincibility and safety as we go about our lives at home and at work. As business people, we also remember the resulting need to reevaluate the commercial "risks" we face and must protect against.

Fortunately for all businesses and individual American workers, the tremendous economic toll taken by the 9/11 terrorist attack did not have a long-lasting, devastating effect on business operations or financial markets. This is because much of the cost associated with the attack was covered by commercial insurance policies.

However, since 9/11, the commercial insurance market – and its resulting critical economic security net – has been in disrepair. In the months immediately following 9/11, the market's dysfunction and associated economic drag prompted Congress and President Bush to enact the Terrorism Risk Insurance Act of 2002 (TRIA). TRIA immediately stabilized the commercial insurance marketplace, guaranteed coverage availability (and improved affordability) to all businesses. TRIA helped restore our economy by enabling financial transactions and construction and development projects once stalled due to a lack of terrorism insurance coverage to move forward.

We all hope that terrorists never strike on U.S. soil again; however, we must plan for that eventuality. As employers, we must be sure our workers and customers, and physical plants are protected and will be able to recover if terrorists victimize us once again. That is why the security provided by a TRIA-like national terrorism insurance mechanism is so important and should continue as long as the threat of terrorism is real.

TRIA is set to expire at the end of this year. All employers should be telling their congressional representative about how important commercial insurance is to protecting our individual businesses and the economy in the event of another catastrophic terrorist attack. Lawmakers need to hear that maintaining a federal terrorism risk insurance mechanism beyond 2005 is a top item on American business's legislative "to do" list this fall.

If you want to help, please visit Terrorism-insurance.org today where you will find more background information about this issue. If you provide your name and address, you will automatically be matched with your U.S. senators and representative.  You can then send an e-mail directly to your legislators.

The following article was provided by "Insure America Against Terrorism", a nationwide coalition of businesses and organizations in the retail, transportation, real estate, sports and entertainment, manufacturing, and construction sectors working to win enactment of a new, workable terrorism insurance mechanism.
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