CONTACTS: Linda Rozett/Eric Wohlschlegel
(202)463-5682/888-249-NEWS

 

Tuesday, November 26, 2002

 

 

WASHINGTON, D.C. -- The United States Chamber of Commerce today praised President Bush for his leadership in securing passage of the Terrorism Risk Insurance Act that Congress passed last week, and said that the new law will help restore billions of dollars to the sluggish economy.

 

“Insuring American businesses has become a top priority for protecting Americans’ investments,” said Thomas Donohue, Chamber president and CEO.  “The dark cloud over the economy caused by the lack of insurance coverage for U.S. businesses has now disappeared.”

 

A significant and growing number of facilities have been forced to operate without terrorism coverage, leaving business owners, employees and their families economically vulnerable in the event of another terrorist attack, according to the Chamber.  Others are now forced to pay astronomical prices for coverage, tying up otherwise productive capital that could be used for job creation and growth.

The bill signed by the President provides a federal backstop necessary for the insurance industry to sell terrorism insurance to businesses.  Specifically, the new law makes the federal government responsible for 90% of losses caused by terrorism, up to a total of $100 billion in losses.  The bill also moves terrorism-related liability cases to the federal court system, which will help prevent venue shopping by trial attorneys and limit outrageous jury awards common in certain state tort systems.

 

The Chamber lobbied aggressively in support of terrorism insurance legislation with modest liability protections – sending action-alerts to its grassroots network of nearly 4,000 association and state and local chamber members and more than 45,000 activists across the country, urging them to call or write Congress.

The U.S. Chamber of Commerce is the world’s largest business federation representing more than three million businesses and organizations of every size, sector and region.

 

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