April 12, 2002—BOMA International President Sherwood Johnston, III, met 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 September 11 terrorist attacks.
“The market is not working,” commented BOMA President Johnston, “and it’s time for the federal government to step in before commerce is slowed even further. Even buildings in seemingly low-risk parts of the country have experienced problems in procuring adequate levels of coverage, not to mention the difficulties faced by high-rises in New York and by properties on Pennsylvania Avenue in Washington, D.C.”
“While we’re doing everything we can to stop terrorist attacks, the economy must be prepared to handle an attack if it does occur,” President Bush concurred. “But I can’t predict with 100 percent 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.”
Late last year, the House passed legislation that would utilize the federal government as a backstop to insurance companies in the event of another major terrorist attack, but the Senate has thus far failed to follow suit.
In January 2002, BOMA International’s Board of Governors unanimously passed a resolution urging government to play a role in ensuring that commercial property owners can continue to obtain coverage for damage from acts of terrorism, at reasonable and affordable rates. BOMA International welcomes the opportunity to work with the Administration and Congress to achieve a workable solution to this immediate problem as soon as possible. For more information, visit BOMA International.
