Senate Passes Bill to Help Fund Terrorism Insurance Claims

Responding to pressure from the construction, banking and real estate industries, as well as the Bush Administration, the Senate recently approved legislation to make federal funding available for insurance claims resulting from future terrorist attacks.

One provision states that for claims in excess of $10 billion and less than $100 billion, the Senate bill would require the government to pay 90%.

A similar House bill passed in the fall contains some variations, such as whether federal funds would be available to cover punitive damages. Consequently, the legislation will soon be addressed in a conference committee with the House and the Senate.

Meanwhile, the construction industry has welcomed progress with such legislation, which, when passed, is anticipated to help along a number of major projects in the New York metropolitan area, which have been held up due to an inability to refinance loans on these projects.

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