U.S. risk managers report terrorism coverage drought (September 11, 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 imperiative that the legislators understand that this remains a critical issue for American businesses and for our economy," says Christopher Mandel, president of RIMS.