|
UWC -- STRATEGIC SERVICES ON UNEMPLOYMENT AND WORKERS' COMPENSATION November 16, 2005 CONTACT: Kevin McCormick 202-637-3465 McCormickK@UWCstrategy.orgSTATEMENT ON TERRORISM RISK INSURANCE ACT EXTENSION LEGISLATION Federal Terrorism Risk Backstop Vital for Workers' Compensation System WASHINGTON, D.C., November 16, 2005 – UWC President Eric J. Oxfeld released the following statement: "We are very pleased that both Senate and House committees have taken action today to move legislation continuing a federal backstop for terrorism risk insurance. The Senate Banking Committee approved its Terrorism Insurance Extension Act of 2005, S. 467, and the House Financial Services Committee approved the Terrorism Risk Insurance Revision Act of 2005, H.R. 4314. "The Terrorism Risk Insurance Act (TRIA) expires in a little more than one month. Unless Congress acts soon, there will be no public or private mechanism to replace it. Without this public-private partnership, a terrorist attack could have a devastating impact on workers' compensation coverage. Workers’ compensation coverage is virtually universal, it is legally mandated, and it is crucial to protect businesses against financial ruin from liability for catastrophic injury to their workforce. "A terrorist attack could hurt or kill hundreds – and potentially thousands – of workers, which means that the potential workers’ compensation loss is catastrophic. The capital of the entire workers' compensation industry is $30 billion, but a single terrorist event could cost $90 billion in just workers' compensation payments. "A disruption in workers’ compensation coverage will severely damage the economy. Because of the unpredictable risk and enormous potential loss that may result from a catastrophic terrorist act, a federal terrorism insurance mechanism is essential to ensure that employers can obtain workers’ compensation and other types of insurance coverage. "Only a federal terrorism risk insurance mechanism along the lines of TRIA can marshal the resources needed to respond to a catastrophic terrorist attack. "For the sake of America's workers and employers, UWC urges the full House and Senate to act quickly to assure that a workable terrorism risk insurance backstop remains in place after the end of 2005." ABOUT UWC: UWC is the only national association devoted exclusively to providing legislative and regulatory representation for the business community on national unemployment insurance and workers’ compensation issues. UWC members are employers, national and state business organizations, service providers, and others who share management’s interest in sound public policy on unemployment insurance and workers’ compensation. |