Property and casualty insurers generally still seek to exclude coverage for damage from attacks involving nuclear, biological, chemical, or radiological weapons (NBCR), according to a new report released by the Government Accountability Office. The new report, Terrorism Insurance: Status of Coverage Availability for Attacks Involving Nuclear, Biological, or Radiological Weapons (GAO-09-39), was done at the request of the Senate Banking Committee and the House Financial Services Committee, and released December 15.

Commercial property and casualty policyholders, including companies that own high-value properties in large cities, generally reported that they could not obtain NBCR coverage, GAO found. However, unlike commercial property and casualty insurers, insurers in workers’ compensation, group life, and health lines reported generally providing NBCR coverage because states generally do not allow them to exclude these risks. The GAO found that commercial p/c insurers “generally remain unwilling to offer NBCR coverage because of uncertainties about the risk and the potential for catastrophic losses.”

GAO Report on NBCR (12/15/08)

December 23, 2008