What is TRIA Insurance Coverage and Why It Matters for Washington Businesses
If you own a business in Lynnwood, WA, or anywhere in Washington State, you may have seen Terrorism Risk Insurance Act (TRIA) coverage as an option on your commercial insurance policy. But what exactly is TRIA, and should your business opt in?
What is TRIA Insurance Coverage?
The Terrorism Risk Insurance Act (TRIA) is a federal program designed to provide financial protection for businesses in the event of a certified terrorist attack. This law was enacted in 2002, following the 9/11 attacks, which caused massive losses and led many insurers to exclude terrorism coverage from policies. To ensure businesses could still obtain terrorism coverage, the government created TRIA as a financial backstop, helping insurers manage the risks of large-scale terrorist events.
How Does TRIA Coverage Work?
- Mandatory Offer: Insurers are required to offer terrorism coverage on eligible commercial insurance policies (e.g., property, liability, workers’ compensation).
- Business Choice: Business owners can accept or decline this coverage.
- Government Backstop: If a terrorist event meets federal certification criteria and exceeds a financial threshold, the federal government helps cover a portion of the losses.
Should Your Washington Business Opt for TRIA Coverage?
While terrorism insurance may not be a top concern for every business in Lynnwood, Seattle, or other areas of Washington State, it can be essential for:
- High-profile locations (e.g., downtown Seattle, large office buildings, stadiums).
- Industries at risk, such as financial institutions, transportation hubs, and tourism businesses.
- Businesses with high property values that could suffer major losses in a catastrophic event.
How Hood Insurance Agency Can Help With Your TRIA Insurance Coverage
At Hood Insurance Agency in Lynnwood, WA, we specialize in helping business owners understand their commercial insurance options, including TRIA coverage. If you’re unsure whether terrorism insurance is right for your business, contact us today for a customized consultation. Protect your business with the right coverage. Call Hood Insurance Agency today!