“…In 2002, Congress stepped in and passed the Terrorism Risk Insurance Act (TRIA),
a public-private partnership that provides a federal backstop against losses from a terrorist attack. But the law is scheduled to expire at the end of this year, and the two competing bills that would renew it lay out different visions of how much federal help private insurers should get…”
When a large hotel near the World Trade Center was destroyed in the 9/11 attacks and a second one severely damaged, the company that owned them — like many other businesses — was relieved they were covered by insurance.
But after 9/11, the insurance industry, which ended up sustaining an estimated $32.5 billion in total losses, grew skittish and began excluding terrorism from commercial policies nationwide. That resulted in businesses having less terrorism coverage or none at all. States and cities worried lenders wouldn’t approve loans to businesses that didn’t have terrorism coverage, potentially stunting economic development and harming real estate markets.
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