OPIC to Offer Terrorism Insurance
Stand-alone insurance program designed to protect US businesses abroad
WASHINGTON, DC - The Overseas Private Investment Corporation (OPIC) has said it will offer stand-alone terrorism insurance to support the international war against terrorism and further protect American businesses abroad.
Previously, terrorism coverage was only available under OPIC's broader political violence coverage.
According to an OPIC spokesman, the terrorism insurance "will cover violent acts with the primary intent of achieving a political objective, undertaken by individuals or groups that do not constitute a national or international armed force."
In addition, he said, coverage will include protection against threats posed by weapons of mass destruction.
OPIC will offer tenors of up to 10 years and will cover countries for which private sector insurance is not readily available.
In January 2002, Congress passed the Terrorism Risk Insurance Act of 2002 (TRIA) to ensure the continued availability of terrorism insurance domestically.
OPIC's new product "will do the same for insurance of American projects abroad, which TRIA does not cover," he said, adding that "OPIC will also work with the private sector by reinsuring sabotage and terrorism coverages for US corporations and US lenders and by filling the gaps in coverage currently available."
Established in 1971, OPIC was created to US-based companies invest overseas, fosters economic development in new and emerging markets, and complements the private sector in managing risks associated with foreign direct investment.
Because OPIC charges market-based fees for its products, it operates on a self-sustaining basis at no net cost to taxpayers, the spokesman said.
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