Mayor Urges Extension of Terror Insurance Act

Senator Schumer and Mayor Bloomberg are calling for the federal government to extend the Terrorism Risk Insurance Act indefinitely and said they want future coverage to include protection against nuclear, biological, chemical, and radiological attacks during a congressional subcommittee hearing at City Hall yesterday.

Congress passed the act after the attacks of September 11, 2001, and extended it in 2005. Under the act, the federal government will pay up to $100 billion a year in insurance losses from a terrorist attack. It will expire this December 31.

Mr. Bloomberg said during his testimony that the federal government should continue providing the insurance because commercial insurers don't have the ability or capacity to offer adequate terrorism coverage.

The insurance act has played a critical role in New York's revival since September 11, 2001 and "is giving businesses the confidence to move forward with exciting new projects," Mr. Bloomberg said. He said he thinks the insurance act should protect against domestic terrorism as well as attacks from abroad.