WASHINGTON – Time is running out on a federal program that provides a backstop to private-sector insurance against terrorist attacks.
The program was enacted after the 9/11 attacks and has been renewed twice. The market for insurance covering terrorist attacks — which is crucial for economic sectors such as real estate, hospitality and major sports leagues — dried up after the 2001 attacks.
The program, which protects insurance companies from catastrophic losses, is credited with reviving the private market for terrorism insurance.
The program expires Dec. 31 and business groups fear a lapse would put a damper on major construction projects, among other things.
A House committee chairman is demanding major changes to the program, setting up an impasse with the Senate.
