It’s only a matter of time before a terrorist again targets American infrastructure for a deadly act of violence. We have seen attacks across Europe—at airports, on pedestrian avenues and atop bridges. When such a tragedy eventually reoccurs in the U.S., the victims and their survivors are likely to sue the owners, developers, contractors or design professionals involved in creating the structures where the attack occurs. Will the companies and professionals have adequate insurance coverage?
Many in the construction industry think terrorism insurance is adequately addressed by spending a relatively small additional premium on the insurance policies associated with the Terrorism Risk Insurance Act (TRIA), which offers the add-on. A federal statute passed in 2002 in response to the 9/11 attacks, TRIA has been implemented to alleviate concerns that private insurers would withdraw coverage or substantially increase premiums as a result of terrorism risks.