Terrorism Insurance in a Post (or Non-Post) TRIA World

Ground Zero Six Months After the 9/11 Attacks

The expiration of TRIA on January 1, 2015 sent the insurance industry into a state of panic and left policyholders with the difficult task of assessing their individual terrorism risks and independently tailoring their insurance policies to suit that risk.  Even if the insurance industry prevails at convincing Congress to reenact TRIA in the New Year, TRIA may not function as initially intended more than a decade ago.  Policy exclusions, changes in insurance coverage law, and changes to terrorism threats post 9/11 may limit the effectiveness of TRIA, even if renewed.  TRIA or no TRIA, though, 2015 is a good time for policyholders to reevaluate their terrorism coverage to make sure that they are adequately protected.

In the aftermath of the terrorist attacks of 9/11/2001, Congress enacted the Terrorism Risk Insurance Act of 2002 (“TRIA”).  TRIA was renewed in various forms until very recently, when Congress left for Christmas break without reaching agreement on an extension of the law. Without further action from Congress, TRIA will expire on January 1, 2015. (more…)