Terrorism Insurance: Do you need it?

Pass-A-Grille - How close could terrorism come to Florida's beaches, airports, or sports stadiums? It's why local police train for such events and why those local agencies have created a Terrorism Task Force. But it's also causing some business owners to ask a question they likely never would have 15 years ago: Do I need terrorism insurance? "I think that's why you have insurance, right: You never know when something will happen," said Kristy Williamson, owner of Vida De Café in Pass-A-Grille, the laid back beach community on the Pinellas coast. Williamson decided to opt out of terrorism coverage this year.

"Every single business every year is offered the opportunity to buy terrorism coverage," Bob Hartwig, President and Economist for the Insurance Information Institute in New York. "That's actually a requirement of the law." The need to offer it came after the September 11 attacks in New York. "In exchange for the government coming in and providing a financial backstop against very large-scale terrorist attacks, insurers were required to offer the coverage," Hartwig said.

Now if three federal agencies (U.S. Secretary of Treasury, Secretary of State, and Attorney General) certify an attack as an act of terrorism, businesses must have opted for the insurance for their policies to cover damages. "For your average business in your average city - talking about a small business - it could be $25, $50 a year ... $100 a year," Hartwig said. "Most businesses are at very low risk and they don't have a lot of property at risk." Larger businesses or higher-profile structures like airports, theme parks or sports stadiums will pay higher premiums; into the thousands sometimes.

Link to Full Article
Link to Video Report in Article

This portion of the article stuck out the most to me...the bold emphasis I added.

"It buys peace of mind and a place like Florida could be attractive to terrorists in the future as they increasingly move towards softer targets all across the country."

First...are you kidding me...Terrorism Insurance??? It's hard for me to even choose the proper words for how I feel about this...and remain within T&C's that is. This is truly appalling to me...

that...

A) we have reached a point in America where businesses even need this type of Insurance.
B) that there are such greedy corporations out there ready to pounce on any and every money making opportunity within a given era.
C) that there are businesses actually considering paying for this Insurance.

To me, this is all but the epitome of raising a White Flag and all but surrendering or at least admitting we're not very confident in our security. I get that people want to secure their business investments, but let's get real, insurance companies don't get rich by paying out claims. The money is in the premiums and the more people they can pour fear into that this is a necessary purchase...well...you know the rest of that scenario.

Well ATS, I leave it for you to discuss. Are there any small or large business owners that would purchase this coverage?

What about those at the Above Network L.L.C. is this insurance that you would ever consider purchasing? I am sure there is a "Cyber Terrorism" rider that you could add on to the policy....if not now, I bet there will be eventually...

I can't believe it is required by law in New York to have be offered this insurance. I think this is a fleecing of America if there ever was one (Thank you TheOnlyAnswer for the correction).

I just had my 'struck by lightning' insurance policy renewed.

Sounds like a robbery and a grab of the balls to me.....

What a crock of crap

reply to post by TheOnlyAnswer

Indeed...I wonder what it takes to start selling insurance? Sheesh...I can think of a few things that people most definitely need insurance for...hmm...why not this to...

At the risk of sounding insensitive... Shooting Spree Insurance...demographic - Theaters, Public Schools, Colleges and Malls to build a good policy holder base then expand accordingly.

Oooo I know how about Zombie Apocalypse Insurance...demographic - 20 - 30 year old gullible and under educated gamers...Ha...that would be a gold mine.

Ludicrous huh? Which is my feeling towards said "coverage" in the OP.

I wonder if they have underwriting guidelines that list preexisting conditions that would be cause to deny coverage? I would love to see the application.

reply to post by WeBrooklyn


Well put...in a nut shell (no pun intended)...I would agree with your sentiments.