Commercial property-casualty insurers in general still remain unwilling to provide nuclear, biological, chemical and radiation (NBCR) coverage under the Terrorism Risk Insurance Act due to uncertainties about the risk and the degree of catastrophic loss, the Government Accountability Office said.
In a report released today, the GAO said that insurers rely on long-standing standard exclusions for nuclear and pollution risks, “although such exclusions may be subject to challenges in court because they were not specifically drafted to address terrorist attacks.”
Companies that own high-value properties in large cities are among those policyholders who cannot obtain NBCR coverage, the survey found.
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