CONTACTS: Linda Rozett/Elizabeth
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Thursday, November 29, 2001
U.S. Chamber Praises House Action on Terrorism Insurance,
Urges Senate to Follow Suit to Avert Economic Crisis
WASHINGTON, D.C.—The United States Chamber of Commerce today
praised House passage of the Terrorism Risk Protection Act (H.R.
3210) to protect the availability of terrorism insurance coverage
for millions of American businesses and limit lawsuits that seek to
blame businesses for terrorist acts.
The U.S. Chamber urged the Senate to follow suit quickly, as the
heightened risk of future attacks threatens to undermine primary
insurers’ and reinsurers’ ability to provide adequate future
commercial insurance coverage.
“Time is running out. If Congress fails to act before
adjourning, the vast majority of businesses will lose their
opportunity to obtain terrorism insurance before Congress returns
next year,” said Bruce Josten, U.S. Chamber executive vice
president. “Failure to provide an insurance backstop now not
only would open companies to exorbitant costs and direct liability
for future attacks, but also could wipe out the benefits of an
economic stimulus package.”
The U.S. and global reinsurance industry does not have the
capacity to provide protection against another attack, according to
the Chamber. Many reinsurers have indicated that they plan to
sharply reduce or eliminate coverage on potential terror targets,
such as office towers, transportation hubs, sports arenas and
critical infrastructure. Without reinsurance, primary insurers
would be unable to shoulder the burden of full coverage.
The Chamber is urging Congress to pass a terrorism insurance bill
– before the end of the session – with reasonable liability
provisions that treat all businesses equally. “Acts of
terrorism must not become a windfall for personal injury lawyers,”
said Josten. “Without congressional action, those 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.”
The Chamber yesterday sent a letter to House members saying that
it will consider votes on H.R. 3210 for inclusion in its annual
congressional ratings. The Chamber also recently sent
action-alert letters to its grassroots network of nearly 4,000
association and state and local chamber members and more than 45,000
activists across the country, and launched a print, TV and radio ad
campaign in major markets.
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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