WASHINGTON, DC — Building Owners and Managers Association (BOMA) International president Sherwood Johnston III met recently with President George W. Bush and other business leaders to discuss the federal government’s role in addressing the unavailability of terrorism insurance coverage, which has been virtually impossible to obtain since the Sept. 11 terrorist attacks.

“Every day, property owners are having serious problems buying terrorism insurance,” said Johnston. “Even in cases where it is available, it more often than not has a high deductible, a 30-day cancellation clause, caps on coverage, or an astronomically high price tag.”

“While we’re doing everything we can to stop terrorist attacks, the economy must be prepared to handle an attack if it does occur,” said Bush. “But I can’t predict with 100% accuracy whether or not another attack won’t occur. And, therefore, we better find terrorism insurance because, without it, it would be a catastrophic problem if there is another attack. It would make it really hard for our economy to recover a second time if there’s an attack without adequate terrorism insurance.”

Last year, the House passed legislation to use the federal government to back insurance companies in the event of another major terrorist attack, but the Senate has thus far failed to follow suit.

For more information, visit www.boma.org (website).

Publication date: 05/06/2002