Tuesday, September 8th, 2026 — Congress is moving toward another long-term extension of the federal terrorism insurance backstop, but an extension would not eliminate coverage disputes that could emerge after a major attack.
The House passed the TRIA Program Reauthorization Act of 2026 in June by a 373-15 vote. The measure would extend the Terrorism Risk Insurance Program through 2034 and, beginning in 2029, increase the minimum loss required for certification of a terrorist event from $5 million to $10 million. It would also establish notification requirements during the certification process.
A separate Senate proposal, S. 4395, would extend the program through 2034 without the House bill’s certification changes. The existing program remains authorized through Dec. 31, 2027.
TRIA requires insurers to make terrorism coverage available in eligible commercial property and casualty lines. After a certified event, insurers handle covered claims according to the underlying policies and can receive partial federal reimbursement after statutory thresholds and insurer deductibles are satisfied.
That structure puts the insurance contract at the center of any future claims response. Federal participation does not create coverage for losses excluded by the underlying policy. Businesses also may have declined terrorism coverage, purchased limits that prove insufficient or have different protection across property, business interruption, workers’ compensation and liability programs.
Mark Friedlander, senior director of media relations at the Insurance Information Institute, said some businesses may underestimate those exposures because no TRIA claims have ever been paid. Terrorism insurance take-up is estimated at roughly 60% to nearly 80%, depending on the measure used.
The potential claims issues become more complicated with cyberterrorism. Treasury guidance includes cyber liability among property and casualty lines eligible for TRIA, but a cyberattack would still have to satisfy the program’s other requirements. Attribution, federal certification and the statutory definition of terrorism could affect whether an event enters the program.
Nuclear, biological, chemical and radiological losses present another potential coverage problem. Such attacks could cause severe losses, while exclusions in commercial policies could restrict the insured losses eligible for federal sharing.
For claims organizations, a major terrorism event could therefore require more than identifying whether TRIA has been triggered. Adjusters and coverage teams may need to examine the insured’s terrorism election, applicable limits and exclusions, affected lines of coverage and the government’s certification of the event. Cyber incidents could add questions about attribution and whether individual losses fall within covered policy terms.
TRIA was enacted after terrorism capacity contracted following the Sept. 11 attacks, which produced about $59 billion in insured losses measured in 2024 dollars, according to the Insurance Information Institute. Friedlander said uncertainty over another extension could cause insurers to reduce terrorism capacity, increase prices or impose additional exclusions, potentially affecting projects whose lenders require terrorism insurance.
