NEW YORK(CBSNewYork) — The future of a federal backstop to protect insurers in the event of terrorist attacks is uncertain.
As WCBS 880’s Monica Miller reported, one New York lawmaker said that the economy and jobs could suffer.
The price of insurance against a catastrophic terrorist attack skyrocketed after the September 11, attacks.
“You could not even insure a hot dog stand for terrorism insurance,” Rep. Carolyn Maloney (D-NY), said.
Rep. Maloney said that the Federal Government created the Terrorism Risk Insurance Act which will expire at the end of the year.
“I’m hearing from businesses in the district which I’m privileged to represent that it’s very difficult for them to renew their terrorism insurance. They are writing policies now that make it specifically clear that they are not covered for terrorism insurance,” Maloney said.
Maloney is fighting to extend the law as it is. However, house Republicans want to increase the trigger for federal coverage from $100-million to $500-million.