COVID-19: Government Should act to Trigger Terrorism Risk Insurance Act (TRIA) Before Forcing Carriers to Cover Exclusions

GUNTERSVILLE, Ala., March 27, 2020 /PRNewswire/ -- The Upton Group, LLC a leading national insurance agency specializing in food delivery insurance urges the federal government to take action to trigger the Terrorism Risk Insurance Act in response to the current pandemic COVID-19.

New Jersey, Ohio and other states are looking at legislation that would require commercial line carriers to provide coverage for loss of income caused by COVID-19. Despite the fact that policy terms contain exclusions for such a loss.

Jason Upton, President of The Upton Group, LLC said: "Restaurants and small businesses all over the country are facing unprecedented losses created by no fault of their own. Rather, the government has forced these closures and the government must become part of the solution."

Upton continued: "I believe the federal government should declare this current national crisis in such a manner that it would trigger the TRIA program. If such a declaration is not possible, then Congress should act to amend the law to include COVID-19.

"Under this scenario this would trigger coverage which premiums have been collected. I believe it is setup on an 80/20 quota share. The government being at 80%. The cap is $100 Billion and that would likely need to be increased as well. I would propose not increasing the cap on the insurance carrier so that the government picks up 100% after the cap is met."

The TRIA act requires the Secretary of Treasury to make the declaration in concurrence with the Secretary of Homeland Security and the Attorney General. Since its creation after the 9-11 terrorist attack the program has never paid a claim.

Jason continued: "I believe this option is preferable to forcing an insurance carrier to pay claims on a policy with no consideration for such losses. The legislation being considered would have a devastating impact not only on the carriers but small businesses as well going forward. Premiums will rise substantially. Coverages and limits would be cut or even eliminated. Depending on any legislations final wording it potentially could bankrupt some companies.

"Because time is critical to save these restaurants and businesses, the quickest solution would be a 4^th COVID-19 legislation that appropriates funds to be available immediately direct to businesses. If that is not possible then triggering the TRIA program must be considered. Given deductibles and other structure features, Congress may have to amend the law more than just naming COVID-19. Doing nothing is not an option. But politicians cannot take actions that, in the words of President Trump, where 'the cure is worse than the problem.' To put this at the feet of the carriers would do just that."

Upton concluded: "Once our nation and industry get through the crisis the attention must then be to establish a new federal facilitated epidemic/pandemic insurance program. We must never put our nation and our business community exposed to such an economic catastrophe ever again."

About The Upton Group, LLC: is a leading insurance agency based in Guntersville, Alabama with a primary focus on pizza delivery franchises and other food delivery company's and restaurants. The company primarily specializes in coverage such as hired and non-owned auto insurance. Other policies coverages include Property & General Liability, Workman's Comp, Employment Practices among other specialty lines

Contact: 
The Upton Group, LLC  
www.theuptongroupllc.com   
1-800-251-7407 Ext 101 
[email protected]

SOURCE The Upton Group, LLC