Terrorism Risk Insurance Act

Updated: 29 February 2024

What Does Terrorism Risk Insurance Act Mean?

The Terrorism Risk Insurance Act (TRIA) is a law signed by President George Bush in 2002. TRIA makes possible more coverage for losses incurred because of terrorism.

TRIA was signed as a response to the massive losses following the September 11, 2001 terrorist attack, which not only destroyed the Twin Towers of the World Trade Center but also damaged several nearby properties.

The law has gone through several iterations and is in effect until 2020.

Insuranceopedia Explains Terrorism Risk Insurance Act

In addition to its evident destruction and tragic devastation, the September 11 terrorist attacks had a severe impact on businesses. The scale of the business losses were not anticipated by insurers. While many did include acts of terrorism as a covered peril, they were not prepared for the extent of the devastation or the subsequent scale of the reparations. To manage this, the government intervened by passing the Terrorism Risk Insurance Act.

TRIA has been modified in 2005 and then again in 2007, when it was renamed the Terrorism Risk Insurance Program Reauthorization Act (TRIPRA).

Under this law, insurers can no longer decline coverage for terrorism or list it as an excluded peril.


Terrorism Risk Insurance Program Reauthorization Act TRIPRA

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