Events of 9/11 disturbed
more than our collective sense of national security.
They also disturbed the availability of insurance coverages
in many areas of the country, particularly those
perceived to have the greatest chance of future terrorist
If you live in Washington, D.C., New York
City, San Francisco, or Chicago, congratulations — maybe.
According to plans filed by the Insurance Services
Office (ISO) under the Terrorism Risk Insurance Act
of 2002, you live in one of the three areas most likely
to attract terrorists. And, under ISO’s suggested
rating plans, you’ll be paying the highest price
for terrorism coverage. Currently ISO proposes three
terrorism rate tiers, subject to review and modification
by state insurance regulators. The preceding cities
are in Tier One.
Tier Two sites are Los Angeles, Houston,
Boston, Seattle, and Philadelphia. All other parts
of the U.S. are in Tier Three. Actual rates from
insurance companies might vary considerably. For
largest carriers may file their own rate factors
independent of the ISO recommendations. Regulators
are working together to develop specifics on
coverage amounts, provisions, and underwriting criteria.
the latest developments in this evolving process,
our risk management professionals are here to help.
us for a convenient time to review your situation