Senate Revives Interest In Terrorism Insurance

WASHINGTON, D.C.— Senate Democrats and Republicans have reached a consensus on the need to revive federal legislation that would put most of the burden of paying for a major terrorist attack on the government rather than insurance companies, reported The New York Times. A vote on the measure, which had been drifting for months, could come as early as this week. But passage is far from certain because the parties have yet to resolve differences over limiting the damages victims could collect from insurers and other businesses. Consumer advocates and some insurance experts contend that with terrorism coverage becoming increasingly available at lower prices, government intervention is no longer needed. But the Bush administration says it is still difficult to get coverage for new construction projects and hotels in cities like New York, Chciago, and Los Angeles. As previously reported in HOTEL BUSINESS®, the Coalition to Insure Against Terrorism— which includes many hotel companies like Marriott International and Six Continents— has been lobbying the government for several weeks to quickly pass the legislation before U.S. construction starts are completely halted due to the lack of adequate insurance coverage. SOURCE: The New York Times