We get a lot of alerts about Congressional actions that might impact arts organizations all the time. Something that wasn’t really on my radar at all was the (non) renewal of the Terrorism Risk Insurance Act. Basically, the federal government provides guarantees for insurance companies that end up having to pay out terrorism claims. If the act isn’t renewed by January 31, it is likely that terrorism coverage policies will be cancelled.
What is making this a big deal is the claim that the Super Bowl won’t happen if this isn’t renewed. This has been an issue before in 2006 with the World Cup when there was difficulty obtaining coverage that was not prohibitively expensive. (By the way, NBC says the game will go on regardless.)
I am not sure if this would impact performing arts centers or not, but I suspect larger stadium shows and outdoor summer festivals like those held in NYC Central Park and Chicago’s Grant park might be at risk.
According to an article on The Hill website, as of 11:00 am this morning, there was still some disagreement between the House and Senate on the details of the renewal.
This is one of those issues that can end up impacting you without you even being aware that it is looming. How many people know if they have terrorism insurance included in their commercial policy? When was the last time you read the updates to your policy?
I will confess, I don’t often read updates to my auto policy but recently did and discovered changes that are clearly aimed at keeping me from using my vehicle for ride sharing programs like Uber or Lyft.
Like it or not, the possibility of terrorism is calculated into so much of what we do. It’s issues like the renewal of this bill that comprise the thousand little things we aren’t aware may have a big impact on our operations.
I wonder, was there ever insurance against nuclear attack during the height of the Cold War? I have recently been listening to ’80s music and realized there are a surprising number of references to nuclear war. I thought I was just anxious because I was a teenager. I guess the absence of an actual strike prevented anyone from realizing what the potential payout might have been.