CHANTILLY, VA — According to the Sheet Metal and Air-Conditioning Contractors’ National Association (SMACNA), in the aftermath of the September terrorist attacks, most major insurance and reinsurance firms have refused to provide insurance coverage for future losses due to terrorisms.

This has generated support from the business community and construction associations to establish a federal safety net to encourage the property and casualty insurance industry to continue offering coverage for future acts of terrorism. Recently, SMACNA has announced that it supports the construction associations in their endeavors to safeguard terrorism insurance and is urging Congress to act on the issue as soon as possible.

The association says that both the House and the Senate have proposed different bills on the matter. Both proposals would provide a federal reinsurance partnership and co-payment of damage claims over a set amount for a period of short durations, such as three to five years. The House passed its version (H.R. 3210) on Nov. 29, but the Senate is still negotiating its version, which would have to be reconciled with the House’s bill.

Publication date: 01/01/2002