U.S. Insurers Seek Renewal Of Federal ’Backstop’ Against Acts Of Terrorism

U.S. insurers are pushing for the extension of a federal terrorism risk insurance program, hoping to fend off a possible gap that would leave their clients scrambling for alternate coverage. The program, which expires at the end of 2020, was created by the Terrorism Risk Insurance Act. The law was passed after the attacks of Sept. 11, 2001, when insurers suffered steep losses and some stopped offering terrorism risk insurance on commercial buildings. The program requires insurers to offer certain types coverage for losses caused by an event that the U.S. government has officially designated as terrorism. If losses from an attack exceed a set amount, a federal backstop kicks in to offset insurers’ payouts.