U.S. risk managers report terrorism coverage drought (October 01, 2002)

A survey carried out by the Risk and Insurance Management Society Inc. (RIMS) of 450 member companies suggests that securing adequate terrorism coverage remains highly difficult.

The survey results show that 71% of respondents are finding it “very difficult” or “impossible” to obtain adequate terrorism insurance. About 84% of the respondents indicated that they did not feel confident that their companies would be sufficiently covered in the event of another terrorist attack. And, more than half of the 80% of those surveyed who had renewed their company’s insurance coverage say that terrorism cover has been excluded from the policy. Of all the member companies surveyed, approximately 65% report that they currently do not have terrorism insurance coverage. “Congress is on the verge of completing a terrorism insurance bill, and it is imperative that the legislators understand that this remains a critical issue for American businesses and for our economy,” says Christopher Mandel, president of RIMS.

As of this writing, U.S. president George Bush was pushing Congress for a speedy resolution to the issue, hoping to have legislation in place by October 4, prior to Congress’ recess.