Insurers are failing to provide businesses with adequate protection from terrorist attack, a report has found.
The report, "Trends in Terrorism: Threats to the United States and the Future of the Terrorism Risk Insurance Act," claims the US would suffer economic instability if it came under attack from terrorists.
The study said terrorism insurance is inadequate as it fails to cover losses from domestic terrorist groups and most policies exclude coverage for nuclear, biological and chemical attacks.
The study calls on the US Congress to fill the coverage gaps by expanding the Terrorism Risk Insurance Act (TRIA) and extending it beyond 31 December 2005.
