Post-September 11 premiums soar.

• Position: Insurance - Brief Article

Due to the terrorist attacks of Sept. 11 and the potential for other incidents, insurers are increasing rates, asking for higher premiums, and making terrorism coverage difficult to obtain, notes John Fitzgerald, an insurance expert at Ball State University, Muncie, Ind. "Sticker shock is very common.... Premiums are skyrocketing for just about every company. It is very costly for businesses working in areas that may encounter a terrorist attack, such as an airport in a major city."

Higher premiums will be accompanied by cutbacks in coverage and higher deductibles, he points out. "O'Hare International Airport in Chicago is the most extreme case we've seen. They were paying $125,000 in premiums for $750,000,000 in coverage, but after September 11, that escalated to $7,000,000 for $150,000,000. Other industries will face a problem in even getting terrorism coverage. If you make munitions or do business in the Middle East, those premiums...