USI Insurance Services has launched a new terrorism insurance product to address the expiring Terrorism Risk Insurance Program Reauthorization Act (TRIPRA), which ends Dec. 31.
Unlike TRIPRA however, USI’s Terrorism Facility Solution, which is underwritten by Lloyd’s of London, covers property risks not limited to acts of terrorism certified by the U.S. Government. In addition, the program comes with less expensive and more flexible deductibles, and is priced individually rather than as a percentage of all-risk premium.
USI’s Terrorism Facility Solution, which is available worldwide, is a direct response to the failure of the U.S. Congress to extend TRIPRA, according to the company. While industry groups intend to pressure the 114th Congress to pass legislation reauthorizing the measure when it reconvenes January 6, there is no guarantee “swift” action will be taken; moreover, the absence of the federal backstop for terrorism coverage jeopardizes billions of dollars in projects requiring commercial insurance, the company stated.
USI’s product uses a risk management analysis to properly identify and quantify terrorism exposures instead of basing coverage on a percentage of total property premiums to have protection that is cost effective, equally lender-compliant and based on actual location exposure.
Key features of the program are:
• A limit of up to a maximum of $200 million;
• A broad definition of terrorism that includes coverage for political, religious and ideological-motivated attacks;
• Terrorism cover provided by Lloyds’ terrorism syndicates; and,
• Markets that are flexible on deductible options, and in some cases offer terms with zero deductible.
USI Insurance Services has more than 4,200 employees in 140 offices nationwide and offers insurance brokerage and consulting in property-casualty, employee benefits, personal risk services, retirement, program and specialty products. The company claims some $1.0 billion in annualized revenue.
Insurance Journal lists USI as the fourth largest privately held commercial lines broker in the country per its 2013 “Top 50 Privately Held Personal Lines” and 2014 “Privately Held Commercial Lines Leader Ranking.”
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