The future of one of the biggest annual, American sporting events, the Super Bowl, is looking dubious as an insurance act is set to expire on the 31 December, and could make the championship financially unviable.
Before 9/11, terrorism cover was automatically covered in the majority of insurance policies for public events. Unfortunately, as a result of the attack was that insurance premiums for businesses, including organisers of events, went up. The Terrorism Risk Insurance Act (TRIA) in the USA helped to combat this.
After becoming law in 2002, insurance businesses could enter a risk-sharing partnership with the federal government. However, However the effect of TRIA is soon to end unless it is renewed, it could have a big impact on the USA, which could include making the highest risk events, like the Super Bowl, unaffordable.
The Super Bowl is set to be played on the 01 February 2015, at the University of Phoenix Stadium in Arizona. Being such a televised, global event, it is a high risk for terrorist attacks. After paying claims following 9/11 of approximately $44 billion, insurance companies are very wary of having to pay compensation of such a huge amount, which could potentially even bankrupt them.
The Act has, however, already been renewed twice since it came into effect, in 2005 and in 2007, so it is possible it will be renewed again.