The federal terrorism insurance "backstop" won't expire until the end of 2007, but construction and other industry interests already are making a case for a continued program with a federal role. An Oct. 2 Bush administration report says coverage for terrorism-related claims is more available and affordable than after 2001's terrorist attacks, but it is silent about whether the program should be extended.
Observers say Congress won't pass a terrorism insurance bill this year. "I do hope that they will address it in the next Congress," says Kelly Knott, an Associated General Contractors' congressional relations director. If developers can't get financing because they lack terrorism coverage, "they don't build," she says.