AIRPORTS FACING INSURANCE WOES AFTER TERRORIST ATTACKS.Byline: Helen Gao Staff Writer BURBANK - Still coping with the effects of the Sept. 11 terrorist attacks, Burbank Airport's insurance premium for war-risk coverage has doubled, while Los Angeles International Airport “LAX” redirects here. For other uses, see LAX (disambiguation). “KLAX” redirects here. For other uses, see KLAX (disambiguation). Los Angeles International Airport (IATA: LAX, ICAO: KLAX, FAA LID: LAX has opted to become selnsured for war-related acts. Shortly after the attacks, officials from both airports said they were notified by their insurance carriers that war-risk coverage was no longer included in their general liability policies. Victor Gill gill, in weights and measures gill, in weights and measures: see English units of measurement. , spokesman for the Burbank Airport Authority, said the agency has contracted with National Union Fire Insurance Co. and will pay $192,000 a year for $50 million in war-risk coverage. Before Sept. 11, Burbank Airport paid $176,000 a year for $300 million in coverage, which included ``war risk.'' ``The way it was before Sept. 11, you had war-risk coverage in our standard coverage,'' Gill said. ``Then following Sept. 11, the insurers withdrew it.'' To further enhance its war-risk coverage, the Burbank Airport Authority plans to petition airlines to name the agency in their insurance policy as additionally insured for their actions at the airport. The U.S. Department of Transportation stepped in to provide airlines war-risk coverage in the aftermath of the attacks. Bill Bruce Bruce, Scottish royal family descended from an 11th-century Norman duke, Robert de Brus. He aided William I in his conquest of England (1066) and was given lands in England. , director of airports administration for Los Angeles World Airports Los Angeles World Airports or LAWA is the airport oversight and operations department for the city of Los Angeles, California. This department owns and operates Los Angeles International Airport, LA/Ontario International Airport, Palmdale Regional Airport, and Van , said two insurance companies offered LAX war-risk coverage for $50 million at an annual premium of $1.8 million. Previously, under a general liability insurance policy, LAX was covered for up to $750 million at an annual premium of about $1.3 million. The policy included war-risk coverage in a free rider Free rider A follower who avoids the cost and expense of finding the best course of action simply by mimicking the behavior of a leader who made these investments. to the agreement. The hefty heft·y adj. heft·i·er, heft·i·est 1. Of considerable weight; heavy. 2. Rugged and powerful. See Synonyms at heavy. 3. premium for relatively low war-risk coverage does not make business sense, said Bruce, who noted that his agency has chosen instead to rely on a $71 million fund it has set up to cover insurance contingencies Contingencies (ISSN 1048-9851) is the bimonthly magazine of the American Academy of Actuaries, providing a large and diverse readership with general interest and technical articles on a wide range of issues related to the actuarial profession. . ``Fifty million - you pay almost $2 million a year in premiums - no,'' he said. ``If something happens out here, we would in essence become self-insured.'' |
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