Coalition seeks passage of terrorism insurance plan

A number of leading trade associations and individual companies have banded together to speak for business insurance policyholders as part of a continuing effort to win passage of a terrorism insurance plan on Capitol Hill.

The groups, representing significant policyholders throughout the transportation, real estate, manufacturing, construction, entertainment and retail sectors, have formed the Coalition to Insure Against Terrorism, according to a CIAT press release.

"Gaps in insurance coverage against acts of terrorism weaken our economy, and pose a very real threat to our homeland security," said Martin DePoy, vice president of government relations at the National Association of Real Estate Investment Trusts, and a spokesperson for the new coalition. "Unfortunately, the insurance industry has neither the capacity nor the willingness to underwrite comprehensive terrorism coverage at this point in time."

Coalition members have expressed concerns that unless Congress steps in, terrorism-related coverage will be available only at prohibitively high rates, if at all.

"The economic impact of further terrorist attacks on the businesses represented by coalition members is immeasurable. Without insurance, it could be catastrophic," DePoy said.

Faced with what CIA Director George Tenet recently described as a convergence of threats, the nation's policyholders are looking to Congress to quickly adopt a federal insurance security net to ensure that comprehensive terror-related coverage is both available and affordable.

"Each day brings renewed warnings from U.S. officials of possible attacks on private facilities, famous landmarks and infrastructure such as airports," DePoy added. "It is properties like these that will find it especially difficult, if not im-possible, to obtain adequate terrorism in-surance coverage."

CIAT intends to ask members of Con-gress to work together in the interests of all policyholders and craft a plan that will give insurers the means to provide comprehensive coverage in the event of future terrorist acts.

"At this critical time in the nation's history, a dysfunctional insurance system could both jeopardize our economic recovery and weaken our homeland security," DePoy added.

Among the groups participating in the CIAT are Associated General Contrac-tors of America, Building Owners and Managers Association, Commercial Mortgage Securities Association, Insti-tute of Real Estate Management, Inter-national Council of Shopping Centers, Mortgage Bankers Association of Am-erica, National Apartment Association, National Association of Home Builders, National Association of Industrial and Office Properties, National Association of Manufacturers, National Association of Realtors, National Association of Wholesaler-Distributors, National Retail Federation, Pension Real Estate Asso-ciation, Real Estate Board of New York and the U.S. Chamber of Commerce.