The Terrorism Risk Insurance Act of 2002 (TRIA), passed by Congress in November 2002, expires at the end of 2005. Congressional action to pass legislation to extend the Act for an additional two years is necessary to ensure that BOMA members – and the entire business community – are able to purchase terrorism coverage at reasonable rates and terms.
BOMA International has once again joined forces with the Coalition to Insure Against Terrorism (CIAT), a coalition of policyholders which includes major real estate associations, the U.S. Chamber of Commerce, Edison Electric Institute, and the National Football League to name a few.
BOMA International and CIAT strongly believe that TRIA is working. Terrorism insurance coverage in generally available and more affordable than prior to the enactment of the Act. Though the federal government’s role as a backstop was always expected to be short-term, BOMA does not believe that the private insurance and reinsurance market can function well in the absence of such a federal backstop. Therefore, we support legislation that would extend TRIA for an additional two years and ask Congress to begin a dialogue now on what is the appropriate role of the federal government on this issue.