Events of 9/11 disturbed more than our collective sense of national security. They also disturbed the availability of insurance coverages in many areas of the country, particularly those perceived to have the greatest chance of future terrorist attacks.

If you live in Washington, D.C., New York City, San Francisco, or Chicago, congratulations — maybe. According to plans filed by the Insurance Services Office (ISO) under the Terrorism Risk Insurance Act of 2002, you live in one of the three areas most likely to attract terrorists. And, under ISO’s suggested rating plans, you’ll be paying the highest price for terrorism coverage. Currently ISO proposes three terrorism rate tiers, subject to review and modification by state insurance regulators. The preceding cities are in Tier One.

Tier Two sites are Los Angeles, Houston, Boston, Seattle, and Philadelphia. All other parts of the U.S. are in Tier Three. Actual rates from insurance companies might vary considerably. For example, the largest carriers may file their own rate factors independent of the ISO recommendations. Regulators and insurers are also working together to develop specifics on coverage amounts, provisions, and underwriting criteria.

For the latest developments in this evolving process, our risk management professionals are here to help. Contact us for a convenient time to review your situation and needs.