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"Florida airport insured for $2 million against terrorism"


 
Tuesday, December 26, 2006

Airport insured for $2 million against terrorism
By Valerie Lovett 
The Panama City (FL) News Herald


PANAMA CITY - While a terrorist attack on Panama City's airport may not be
likely, it would be costly. 

With that in mind, the Airport Authority executive board recently approved
the purchase of some $2 million in terrorism insurance from its insurer
Brown and Brown Insurance. 

The policy costs an $2,667 a year. 

"It's not a real threat," said board Chairman Joe Tannehill. "It's just that
if there was a terrorist attack that resulted in some property damage, our
normal insurance wouldn't cover replacement of it." 

Nothing precipitated the purchase, Tannehill said, other than the new
availability of the addition to the policy. 

Other airports and businesses throughout the nation also may be taking up
their insurers on similar offers. 

A study originating at the White House and released in September said the
availability and affordability of terrorism insurance has improved in recent
years. 

The President's Working Group on Financial Markets report to Congress notes
that companies buying such insurance has increased from 27 percent in 2003
to 58 percent in 2005, while the cost has fallen to roughly 3 to 5 percent
of total property insurance costs. 

The Airport Authority will pay a total of $74,300 for its property insurance
coverage in this fiscal year - and like other companies and citizens, the
figure is a huge increase over last year's rates of about $30,000. 

Cuts in other areas help offset the new charges, said Director of
Administration Pamn Henderson. 

Terminal rent increases also help, she said. On Oct. 1, rents increased -
for the first time since about 1993 - from $16.81 per square foot per year
to $25.40 per square foot.

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