October 21, 2002
In its continuing efforts to clearly identify problems with the availability of terrorism insurance, the Building Owners and Managers Association (BOMA) International recently released the results of its national survey on terrorism insurance coverage. The survey clearly documented the significant difficulties many commercial real estate professionals are facing in their attempts to obtain adequate coverage, and the defects in the terrorism policies. The survey, conducted by BOMA in September, revealed several disturbing results, the most serious of which showed that more than one quarter of survey respondents were unable to obtain terrorism insurance at any cost. Of the remaining 73% who have been able to secure coverage, a full 80% incurred higher premiums, caps on coverage higher deductibles, cancellation clauses of 60 days or less, and/or exclusions for chemical, biological or radiological acts.