• The Terrorism Risk Insurance Act of 2002: Coverage in a Post-9/11 World
  • July 15, 2003
  • Law Firm: Goodwin Procter LLP - Boston Office
  • Before September 11, 2001, terrorism coverage was routinely included in commercial insurance policies. Insurance claims from the September 11th attacks were estimated at $40 billion to $50 billion with property insurers covering most of the losses. As a result, primary insurers drastically raised their premiums or eliminated terrorism coverage entirely, often both in pre-existing and new policies, and reinsurance companies stopped providing terrorism insurance to primary insurers. More than $15 billion in real estate transactions were put on hold or canceled because owners and investors could not obtain terrorism insurance protection.