CONTACTS: Linda Rozett/Eric
Wohlschlegel (202)463-5682/888-249-NEWS
Tuesday, June 18, 2002
U.S. Chamber Hails Senate Passage of
Terrorism Insurance, But Warns Trial Lawyers Could Exploit
Future Terrorist Attacks
WASHINGTON, D.C. -- The United States Chamber
of Commerce hailed bipartisan Senate action on terrorism insurance
legislation that helps to ensure that American businesses and
investors will have the coverage they need to sustain their
operations and protect jobs and our economy.
“Failure to act has stifled investment,” said
Bruce Josten, U.S. Chamber executive vice president. “It’s
high time we show the world we’re stronger then ever. The
business community can do that with confidence now that it has an
insurance backstop to cover office buildings, shopping malls,
hotels, and other investments that will keep our economy
growing.”
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 a terrorist attack. Others are forced to
pay astronomical prices for coverage, tying up otherwise productive
capital that could be used for job creation and growth.
The U.S. House passed the Terrorism Risk
Protection Act (H.R. 3210) last November. The act protects
the availability of terrorism insurance coverage for millions of
American businesses and limits lawsuits that seek to blame
businesses for terrorist acts.
The Chamber expressed concern that the Senate
version did not include reasonable limits on punitive damages. “The
Senate bill contains a glaring loophole that could force victims of
terrorist attacks to pay punitive damages for the acts of
terrorists,” said Josten. “This loophole creates another crack
in our legal system that will allow unscrupulous trial lawyers to
exploit the aftermath of any future terrorist attacks,” concluded
Josten.
Since September 11, the Chamber has lobbied
aggressively in support of terrorism insurance legislation with
modest liability protections. The Chamber also sent
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 their
Senators.
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.
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