Terrorism Risk Insurance Act

The Terrorism Risk Insurance Act (TRIA) is a U.S. law enacted in 2002 to provide a federal backstop for insurance claims arising from acts of terrorism. After the September 11 attacks, insurers were reluctant to cover terrorist-related risks, leading to a gap in coverage. TRIA ensures that if a terrorist attack occurs, the federal government helps insurers pay claims once losses exceed a certain threshold. This program aims to stabilize the insurance market, making it easier for businesses and individuals to obtain coverage for acts of terrorism, fostering economic stability and confidence in the marketplace.