Following September 11, 2001, the federal government enacted the Terrorism Risk Insurance Act (TRIA) to guarantee the availability of insurance coverage against international acts of terrorism. Under the Act, commercial insurers offer insurance coverage against terrorism incidents, and the federal government reimburses the carriers for paid claims, subject to deductible and retention amounts. The methodology behind this legislation was to stimulate business investment and to give the insurance market time to recover from attacks and develop new programs. Congress has reauthorized the act numerous times since 2002.
As a result of TRIA, terrorism risk insurance can be purchased as a stand-alone policy or as an endorsement to commercial property, commercial automobile, and general liability insurance. Chivaroli & Associates can assist your organization in evaluating potential exposures to terrorism and assessing the need and limit of coverage.
