A new Rhode Island law allows for a terrorism exclusion from the Standard Fire Policy (SFP) for certain commercial risks. The new law, which became effective last week, amends the state’s Special Commercial Risk statute to exempt those risks from the SFP’s requirements.
“This is an important law will allow policyholders and insurers to manage an unpredictable and potentially infinite risk in the form of a terrorist attack,” said Laura Kersey, AIA assistant vice president, northeast region. “This law recognizes that there is a threat that no one thought about before September 11, 2001.”
Earlier this year AIA put forward the legislation (S. 3057) that subsequently passed both houses of the legislature unanimously and took effect last week.
Louisiana, Michigan, Minnesota, Nebraska, New Hampshire, Oklahoma, Virginia and Connecticut have already provided some form of terrorism exclusion to the SFPs in their states.
Topics Catastrophe Natural Disasters Commercial Lines Business Insurance
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