Especially hard hit are projects that are being proposed as "trophy type" buildings that are designed to attract considerable attention, Snyder says.
"Some insurers -- such as Willis North America and American International Group -- have created what are called a 'terrorism coverage facility' but I've been told their rates are not cheap," he adds. "The reason? Fear among reinsurers."
On Feb. 20, the Financial Services Roundtable and the AFL-CIO's Building & Construction Trades Dept. sent a joint letter to President Bush about the problem, calling for federal legislation to provide safeguards for terrorism insurance, Snyder notes.
"The lack of insurance has had a chilling effect on lending for large commercial projects," the letter read, "and though the breadth of the negative impact may not be fully evident, there is no doubt that lenders are steering money away from projects that lack insurance." It was signed by AFL-CIO BCTD President Edward C. Sullivan and FSR President Steve Bartlett.
"We know of no more urgent issue facing the economy and our organizations," the letter reads.
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