WASHINGTON, D.C. — Businesses across the country could avoid disruptions in insurance coverage under a bipartisan proposal to extend a federal program that protects against financial losses from terrorist attacks.
What This Means for You
- Businesses may retain access to terrorism insurance coverage
- The proposal aims to prevent sudden gaps that could disrupt projects and jobs
- Long-term extension could provide stability for key industries
U.S. senators from both parties introduced the Terrorism Risk Insurance Program Reauthorization Act of 2026, legislation that would extend a federal insurance backstop for seven years.
The program, known as the Terrorism Risk Insurance Act, or TRIA, helps ensure that businesses can obtain insurance coverage for losses related to terrorist attacks.
Why the Program Exists
After the September 11, 2001, attacks, many insurers stopped covering terrorism-related risks, leaving businesses unable to secure required insurance for financing, construction, and operations.
Congress created TRIA in 2002 to address that gap by establishing a federal reinsurance backstop — a system in which the federal government helps cover extreme losses so private insurers can continue offering policies.
Risk of Coverage Gaps
Lawmakers said the program remains critical because private insurers still rely on the federal backstop to offer terrorism coverage.
When TRIA briefly expired in 2014, many policies immediately excluded terrorism coverage, leaving businesses exposed to risk and uncertainty.
The current authorization is set to expire December 31, 2027.
What the Bill Would Do
The proposed legislation would extend TRIA for an additional seven years, aiming to provide long-term certainty for insurers, lenders, and businesses.
Supporters said acting before the expiration date is key to avoiding disruptions in coverage.
Sen. Dave McCormick of Pennsylvania said the program helps protect jobs and businesses from potential attacks.
“Reauthorizing TRIA ensures businesses and workers in Pennsylvania will be supported in the event of a terror attack,” McCormick said.
Broad Bipartisan Support
The bill is backed by a large group of lawmakers from both parties, including senators from Pennsylvania, Minnesota, North Carolina, and Arizona who led the effort.
Supporters said the program plays a key role in supporting industries such as real estate, construction, energy, transportation, and large-scale events that depend on insurance coverage.
Industry Backing
The proposal is also supported by a wide range of industry groups, including organizations representing banking, real estate, insurance, hospitality, and major sports leagues.
Advocates said the program helps maintain economic stability by ensuring that businesses can continue operating and investing even in the face of security risks.
Next Steps
The legislation will be considered by Congress ahead of the program’s 2027 expiration.
Lawmakers said the goal is to provide certainty to the insurance market and prevent disruptions that could affect businesses, workers, and the broader economy.
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