What is the program trigger for the Terrorism Risk Insurance Act?

The program trigger for the Terrorism Risk Insurance Act (TRIA) is set at $200 million. This means that for a terrorist attack to be covered under the provisions of TRIA, the total losses resulting from the incident must meet or exceed this threshold amount. This high trigger was established to ensure that only significant terrorist events would qualify for federal assistance, thereby limiting the federal government's financial exposure while also encouraging insurers and policyholders to assess and manage their risk appropriately.

Setting the threshold at $200 million reflects the intention to balance the need for protection against terrorism risks with the recognition that not all incidents warrant federal involvement. This approach encourages the insurance industry to cover costs related to terrorism while still allowing for the federal government’s support in significant cases. The other figures listed do not represent the established trigger for TRIA and would not lead to the same federal assistance for terrorism-related losses.