Under TRIA, which lines of coverage are covered for acts of terrorism?

Under TRIA, which lines of coverage are covered for acts of terrorism?

• A. Homeowners Insurance
• B. Auto Insurance
• C. Commercial Property, Commercial Liability, and Workers' Compensation
• D. Personal Liability Insurance

Answer: (C)

TRIA provides a federal backstop for terrorism risk specifically to commercial lines. The lines covered are commercial property, commercial liability, and workers’ compensation, which are the major commercial exposures that insurers write for businesses. Personal lines—such as homeowners, personal auto, and personal liability—aren’t included under TRIA. So the best choice is the one that lists the commercial property, commercial liability, and workers’ compensation categories. If a terrorist event causes losses in those commercial areas, TRIA can apply to help stabilize coverage.

TRIA provides a federal backstop for terrorism risk specifically to commercial lines. The lines covered are commercial property, commercial liability, and workers’ compensation, which are the major commercial exposures that insurers write for businesses. Personal lines—such as homeowners, personal auto, and personal liability—aren’t included under TRIA. So the best choice is the one that lists the commercial property, commercial liability, and workers’ compensation categories. If a terrorist event causes losses in those commercial areas, TRIA can apply to help stabilize coverage.