SECTION: NEWS; Pg. 14A

LENGTH: 399 words

HEADLINE: Federal assistance is crucial

BYLINE: Martin L. DePoy

BODY:
Today's debate: Preparing for terrorism


Opposing view: Businesses, economy are vulnerable to future terrorist attacks.

Confirmation that Osama bin Laden's voice is on an audiotape threatening new terrorism against the U.S. follows CIA Director George Tenet's warning that a reconstituted al-Qaeda is "coming after us." Yet more than a year after the terrorists' attack, public and private places remain exposed to the threat of catastrophic economic loss in the event of further attacks.
President Bush has repeatedly asked Congress to pass legislation authorizing a three-year terrorism-reinsurance program, calling it a proper role for the government. We agree. It is a crucial step to ensure our economy stays secure, protected and strong.


Without such a backstop, insurance consumers represented by the Coalition to Insure Against Terrorism remain at great risk. A survey in September found that 84% of corporate risk-management experts do not feel confident that their companies would be sufficiently covered in the event of another attack. Why? Few insurers are willing to offer terrorism coverage of any kind, severely limiting capacity. Exclusions abound (for radiological and biological attacks, for example). Then there is the exorbitant cost.


The lack of coverage has impacted 300,000 construction jobs and reduced economic growth by 1%, according to the White House. The Real Estate Roundtable found more than $ 15 billion worth of real-estate projects have been delayed or canceled.


Only a short-term federal backstop will ensure the return of a functioning terrorism-insurance marketplace. Without it, people and the places where they live, work, shop and play will face needless economic risk. More commercial-property deals will be killed. Job creation will suffer. Our economic recovery will be delayed.


Given the renewed terrorist threats, Americans remain vigilant, but vulnerable. Pretending we are fully prepared when insurance remains unavailable won't make it so. The economic impact of more terrorist attacks on businesses is close to immeasurable. The absence of a federal terrorism-insurance backstop is inconceivable.


Martin L. DePoy is spokesperson for the multi-industry Coalition to Insure Against Terrorism and vice president of government relations at the National Association of Real Estate Investments Trusts.


LOAD-DATE: November 20, 2002