Product Update

TRIA Extension Discussed in Construction Risk Management

This release of Construction Risk Management contains an updated discussion of the recently renewed Terrorism Risk and Insurance Program Reauthorization Act.

Concerned about the limited availability of terrorism coverage and its impact on the economy, Congress passed the Terrorism Risk Insurance Act (TRIA) of 2002. This Act established a temporary federal program of shared public and private compensation for insured commercial property and casualty losses resulting from foreign acts of terrorism. Through a series of extensions known as the Terrorism Risk and Insurance Program Reauthorization Act in 2005, 2007, 2015, and 2019, TRIA is now extended through December 31, 2027. As of 2020, the 2015 reauthorization's incremental changes in the loss threshold required to qualify as an act of terrorism and in how losses are allocated between insurers and the federal government are complete.