Second WTC trial declares 9/11 attacks two events

Despite an earlier jury trial which declared the felling of the World Trade Center towers by terrorist on September 11, 2001 as one occurrence in insurance terms, a second trial has declared the attacks as two events.The second verdict, which featured a different group of eight insurer defendants than the first, paves the way for WTC leaseholder Larry Silverstein to collect double the insurance limits on policies from those specific insurers.In a statement, Silverstein says, “Today’s decision means an additional billion dollars of insurance proceeds will be available, which, together with Liberty Bonds, will ensure a timely and complete rebuild of the World Trade Center. I strongly felt, and the jury agreed, that the destruction of the Twin Towers by two separate airplanes at two separate times was two separate occurrences and that these insurers have an obligation to pay their fair share to help make Lower Manhattan whole again.”However, insurers involved have stated their intention to appeal the decision rendered late Monday, just as Silverstein is appealing the earlier decision involving a larger group of insurers which did not go in his favor.Silverstein’s intention is to collect double his policy limits for the buildings, which would total US$7 billion, with the insurers involved in Monday’s decision accounting for about $1 billion of the coverage. If the verdicts stand as is, Silverstein would likely collect just over US$4.5 billion. An appraisal process is required to determine the actual payout.The earlier trial found that many of the insurers involved in the coverage were bound by the Willis Property (Wilprop) form, which was ruled to define the attacks as one event. The group involved in the second stage were bound by other forms among the group, Travelers, on the hook for US$211 million, had no definition of occurrence in its policy.Another insurer, TIG Insurance Co., which is part of Toronto-based Fairfax Financial, is on the hook for less than US$2 million, net of reinsurance. According to a Fairfax statement, the verdict will have an immaterial impact on the company.Speaking out quickly against the verdict was French reinsurer SCOR, which provided reinsurance for defendant Allianz Global Risks. SCOR says it “considers the jury’s verdict to be contrary to the terms of the insurance coverage in force and to the intent of the parties”, and will support Allianz’s efforts to have the decision overturned on appeal. SCOR notes that Allianz has already said it expects the appraisal process will find Silverstein Properties “did not sustain covered losses in excess of one policy limit”.