Government Report Questions Terrorism Surcharges

Workers' compensation insurers do not believe they are charging adequate rates to cover the risk of nuclear, biological, chemical or radiological attacks, either because of regulatory constraints or because they have no means of measuring their exposure, according to a report released by the Government Accountability Office on Tuesday. The GAO report specifically called into question the adequacy of "terrorism surcharges" that many states tack onto workers' compensation policies. And the report concluded that the insurance industry in general is ill prepared to cover the risk of attacks wit...