By Liz Carey, Financial Regulation News
Legislation introduced by U.S. Sen. Tina Smith to safeguard the availability of terrorism risk insurance coverage passed the full Senate unanimously.
The Terrorism Risk Insurance Program Reauthorization Act of 2026, co-sponsored by U.S. Sens. Dave McCormick (R-PA), Ruben Gallego (D-AZ) and Thom Tillis (R-NC), would extend the Terrorism Risk Insurance Act of 2002 (TRIA), which created a federal reinsurance backstop to stabilize the private market and ensure that commercial policyholders could continue to obtain terrorism risk coverage.
“Without this bill, a potential terrorism event would mean an even greater financial catastrophe for businesses and taxpayers. It’s critical that we keep terrorism risk insurance available and affordable to businesses in Minnesota and across the country,” Smith said. “Extending this law will ensure housing development and major public events like Vikings games can continue. I’m heartened to see it pass with such strong bipartisan support and urge the House to pass this bill.”
After the 9/11 attacks in 2001, many insurance companies began to exclude terrorism risk from commercial insurance policies which left businesses and industries without coverage. That coverage gap threatened to damage the real estate, construction, energy, transportation and related industries. The TRIA created the federal backstop for the insurance and allowed the private market to ensure that commercial policy holders could continue to obtain terrorism risk coverage.
Lawmakers said that given the current threat landscape, allowing a lapse in terrorism coverage would expose policy holders to unnecessary financial risk and uncertainty.
Smith’s legislation would extend TRIA by seven years. The current legislation expires on Dec. 31, 2027.
The Terrorism Risk Insurance Act is also backed by the NFL, Major League Baseball, the National Association of Home Builders, the National Multifamily Housing Council, the American Council of Engineering Companies, and others.