TRIA Nonrenewal Effect on Workers Compensation Coverage
January 05, 2015
Mark Walls, vice president of Communications and Strategic Analysis at Safety National, describes in a recent article on Insurance Thought Leadership.com the various reactions in the insurance marketplace to the news of the failure of Congress to act on the Terrorism Risk Insurance Act (TRIA) before adjourning for 2014, resulting in TRIA's expiration.
The reaction began in early 2014, according to Mr. Walls.
"But, at the end of the day, employers should be able to obtain workers' compensation coverage without the TRIA backstop in place," Mr. Walls stated.
However, he points out that workers compensation is statutory, and insurers cannot exclude for cause and put terrorism risk exclusions on a workers compensation policy. The only choice an insurer has is to provide coverage or decline the risk, he said.
Captives using fronting insurers for workers compensation coverage could be faced with tough decisions around this coverage in 2015. An optimistic view is that Congress will take early action renewing TRIA.
January 05, 2015
