The first smattering of prices on the Congressionally mandated terrorism coverage is trickling out of the insurance industry, and they are–as supporters of the bill predicted–lower than standalone terrorism coverage, to the extent that such coverage was available before the legislation passed. But are the new prices low enough?

Before Congress and the White House decided to fix the problem, the insurance being offered to companies covered all kinds of terrorist acts–those committed in the U.S. or abroad or by foreign or domestic terrorists. Under the new law, insurers are only required to offer coverage on what is deemed "certified terrorism," which is defined as attacks within the U.S. by individuals acting on behalf of foreign interests. Of the losses generated by this very specific brand of terror, the government has agreed to pick up 90%.

Yet, some companies are being quoted quite high prices. According to Suzanne Douglass, managing director of Willis Risk Solutions' property practice, the few prices she has seen so far are "all over the lot," with some as low as 3% to 5% and others as high as "75% to maybe 100%" of the property premium. "Some has to do with the location and occupancy," Douglass says. "On more benign things, we're seeing the lower of the pricing."

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