House Passes Key Bill

They say predictable terrorism coverage supports the financing of commercial real estate projects, construction activity and the operation of large venues and infrastructure that are significant parts of the national economy.

Analysts have warned that if the program isn’t reauthorized, it could cause insurers to shy away from providing terrorism coverage, either raising costs or eliminating availability for businesses in major metropolitan areas and high-profile sites.

Supporters of the bill have characterized the changes as sensible adjustments that boost taxpayer protections without undermining the program’s fundamental purpose.

For example, by raising the certification threshold, the federal government would only get involved if there were a higher bar of insured losses, thus reducing the chances that smaller events would trigger government participation.

This sector underpins millions of jobs in construction, property management, retail, hospitality and related industries across the country.

Large projects such as office towers, stadiums, shopping centers and industrial facilities generally require comprehensive insurance packages, including terrorism coverage.

But the unpredictable nature of terrorism makes it difficult to model the risk using traditional actuarial methods, lawmakers and industry representatives said.