Terrorism Insurance

In December 2014, Congress renewed the Terrorism Risk Insurance Act (TRIA). TRIA was created shortly after 9/11/2001 as a way of funding the insurance industry in the event of a future act of terrorism. It has been renewed a couple of times and was renewed just recently for another seven (7) years.


This act allows insurance carriers to automatically put into commercial insurance policies a premium to cover damages caused by terrorism. This figure is usually several hundred dollars per year for a mid-sized premium ($2-4 million in coverage). It is not an excessive amount but it is an unnecessary amount.


Policy holders can opt out of this terrorism insurance. Call your insurance broker and ask that the terrorism coverage be removed ASAP. It will save you hundreds of dollars a year that you’ll never recoup. There is also a workers’ comp terrorism policy and Congress mandated that employers cannot opt out of that insurance – bummer.


Other than the savings why would you opt out of this coverage? Because odds are you’ll never need it. For this coverage to go into effect, the act of terrorism must be certified by the Secretary of the Treasury of the United States. Ask yourself before you cancel your coverage, what are the chances that your location will be the victim of such an attack that it requires the US Secretary of the Treasury to declare it an act of terrorism?


Lead On!