CONTACTS: Linda Rozett/Elizabeth
Keys (202)463-5682/888-249-NEWS
Thursday, December 20,
2001
U.S. Chamber Chides Senate for Inaction on
Terrorism Insurance
WASHINGTON, D.C.—The United
States Chamber of Commerce today expressed its frustration over the
Senate’s failure to enact legislation to ensure the availability of
terrorism insurance coverage for millions of businesses and provide
modest liability protections.
“The Senate’s failure to act is a serious blow to
the economic recovery,” said Bruce Josten, Chamber executive vice
president. “It exposes millions of companies to loss of
coverage, direct liability for future attacks and exorbitant
finance, transportation and other costs in an already challenging
economic time.”
In the current high-risk climate, the reinsurance
industry does not have the capacity to provide protection against
another terrorist attack, according to the Chamber. With the
increased likelihood of future attacks, many reinsurers plan to
sharply reduce or eliminate coverage for millions of businesses and
facilities. Without reinsurance, primary insurers cannot offer
coverage to their customers when policies expire on December
31.
“The bill is not a ‘bailout’ for the insurance
industry, but an appropriate federal financial backstop to help
ensure coverage is available,” said Josten. “If companies and
facilities are unable to obtain coverage, lenders could refuse
credit, torpedoing many real estate transactions and economic
development projects.”
Since September 11, the Chamber has lobbied
aggressively in support of terrorism insurance legislation with
modest liability provisions. “Without liability limits, trial
lawyers who seek to exploit any future terrorist attacks will likely
hamper our nation’s economic recovery, enriching themselves at the
public’s expense,” said Josten.
The U.S. Chamber of Commerce is the world’s
largest business federation, representing more than three million
businesses of every size, sector and region.
# #
#
01-261
|