First Party Standalone Terrorism Coverage

The decision to accept or reject TRIA, the Terrorism Risk Insurance Act, is a crucial one for businesses as they navigate their insurance renewals. Created in response to the 9/11 attacks, TRIA provides government-backed terrorism insurance on Liability and Property policies to stabilize the insurance markets.

The Terrorism Risk Insurance Program Reauthorization Act (TRIPRA) extends this coverage through 2027, but some experts argue that relying solely on the government-backed program may not be the best option. Since its inception, there have been no certified acts of terrorism that triggered TRIPRA coverage, leading to uncertainty about how the program would respond in such an event.

In contrast, standalone terrorism insurance property policies offer broader and more defined coverage for property damage and loss of income/loss of use in the event of a terrorist act. While slightly more expensive than TRIPRA coverage, standalone policies provide more certainty of coverage without the need for government certification or specific loss thresholds.

With the added coverage and flexibility of standalone terrorism policies, businesses may find it worth the slightly higher premium. By working with a reputable insurance broker like TSIB, companies can review their options and ensure they have the right coverage to keep their assets and operations protected in the event of a terrorist attack.