Copyright 2004 A.M. Best Company, Inc.
BestWire
July 12, 2004
447 words
DEMOCRATS' INSURANCE COVERAGE TO TOP $2.6M FOR CONVENTION
WASHINGTON (BestWire) - The host committee of the Democratic National Convention has paid an additional $86,000 in insurance premium to add terrorism coverage to the general-liability policy covering the event later this month.
The four-day event, from July 26-29, is expected to draw more than 35,000 people to Boston, including about 6,000 delegates, 15,000 media representatives and 8,000 to 10,000 volunteers, according to the organizers. The event organizers will spend more than $2.6 million on insurance before it opens July 26, according to David Passafaro, president of the Boston 2004 host committee. In addition to the terror-attack coverage, Boston 2004 has spent roughly $2.4 million on general liability insurance and $145,000 on a policy to cover liabilities in case the convention is cancelled. The host committee had originally budgeted about $3.9 million for insurance, but scaled that amount back. The terrorism coverage is part of the larger general-liability policy, which provides the host committee up to $100 million in coverage for officers and directors, property damage, casualty, automobile, and theft.
The owners of nine buildings near Boston's FleetCenter, the site of the convention, have also opted for terrorism coverage, according to several news reports, which said the policies were sold by Hub International New England of Wilmington, Mass. Officials at Hub were not immediately available; news reports quoted company officials as saying that terror coverage for a $25 million building would add another $3,000 to the cost of a policy.
The terrorism coverage purchase comes in the wake of a warning last week by Homeland Security Secretary Tom Ridge, who said that al-Qaeda was potentially planning an attack aimed at disrupting highly public events such as the Democratic convention. Heightened concerns about security have pushed security costs from $49 million, the amount originally budgeted, to $95 million, according to Boston 2004.
Meanwhile, officials with the Republican National Convention, to be held Aug. 30 through Sept. 2 in New York City, have said they are purchasing insurance coverage for the event--but they will not say how much they have purchased or whether that coverage includes terrorism coverage. In a statement, the host committee of the Republican convention said that it would not go into details on the types or amounts of insurance coverage it has purchased, only that the costs of that coverage fall within its $64 million budget.
(By Chris Grier, Washington bureau manager, BestWeek: Chris.Grier@ambest.com)
July 13, 2004
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