The Terrorism Risk Insurance Act

The Terrorism Risk Insurance Act (TRIA) is a U.S. law that provides government backing for insurance policies covering damages from terrorist attacks. It encourages private insurers to offer coverage by sharing the financial risk with the federal government, ensuring that businesses and organizations can obtain affordable terrorism insurance. When a certified terrorist incident occurs and causes significant damage, the government resources help cover insured losses after a certain threshold is met. This system helps maintain economic stability and supports national security efforts by ensuring terrorism-related risks are manageable for the insurance market.