Terrorism Risk Insurance Act
What Does Terrorism Risk Insurance Act Mean?
The Terrorism Risk Insurance Act (TRIA) is a law signed by President George W. Bush in 2002, designed to increase the availability of coverage for losses resulting from terrorism.
TRIA was enacted in response to the significant losses incurred after the September 11, 2001, terrorist attacks, which not only destroyed the Twin Towers of the World Trade Center but also caused extensive damage to nearby properties.
The law has undergone several revisions and was extended through 2020.
Insuranceopedia Explains Terrorism Risk Insurance Act
In addition to the widespread destruction and tragic loss of life, the September 11 terrorist attacks had a significant impact on businesses. The scale of the business losses was far beyond what insurers had anticipated. While many insurance policies included terrorism as a covered peril, insurers were unprepared for the extent of the devastation or the subsequent scale of the reparations. To address this, the government intervened by passing the Terrorism Risk Insurance Act (TRIA).
TRIA was modified in 2005 and again in 2007, when it was renamed the Terrorism Risk Insurance Program Reauthorization Act (TRIPRA).
Under this law, insurers are no longer allowed to decline coverage for terrorism or list it as an excluded peril.
