Largest Loss in U.S. History Breeds Largest Insurance Loss

The insurance industry is preparing itself for the most costly catastrophe it's ever faced. Insured losses are likely to be in the tens of billions of dollars. Gordon Stewart is the president of the Insurance Information Institute (III). He visits the Early Show to talk about it.

Insured property/casualty losses from the terrorist attacks could well surpass the record losses from Hurricane Andrew in 1992, which resulted in $15.5 billion in claims paid to victims of that catastrophe. Insured losses are likely to be in the billions of dollars, but it will be some time before an accurate assessment of the total impact can be made, cautions the III. Some estimates exceed $25 billion.

Any determination of insured property/casualty losses will take into account:

• The property damage to the World Trade Center complex and adjacent buildings.
• Business and personal property of tenants and their employees.
• Workers compensation benefits for dead or injured workers.
• Claims for lost business income.
• The cost of establishing alternative, temporary operations at off-site locations and damage to vehicles.
• Aviation policies and other liability coverages.

Property insurance policies generally cover damage from fire, explosion, smoke, or other property or liability loss that occurs. Insurance policies do exclude war, but this is generally defined as a declared war between nations. In light of increased global terrorism, some commercial insurance policies may have exclusions for damage caused by terrorist attacks.

The US government is self-insured, so physical loss to government buildings is not a commercial insurance issue. But insured commercial businesses within the Pentagon, for example, could incur insured losses.

The following statistics can put the losses in perspective:

• The 1993 World Trade Center bombing caused $510 million in insured losses.
• The 1995 Oklahoma City bombing resulted in insured losses of $125 million.
• The Los Angeles riots of 1992 resulted in insured losses of $775 million, previously the most costly insured man-made disaster until today.

  
  

For general questions regarding all types of insurance, visit www.disasterinformation.org.

The National Insurance Consumer Helpline at 1-800-942-4242 is available daily between 8 AM and 8 PM Eastern Daylight Time to help with questions from businesses and individuals about the insurance implications of this tragedy.

In addition, people may contact the New York State Insurance Department Hotline between the hours of 8 AM and 8 PM Eastern Daylight Time 7 days a week at 1-800-339-1759.

The following are the contact numbers for those with claims and questions about their insurance:

ACE USA

• 1-888-873-6255.
• Customers, brokers and agents may continue to report claims in the normal course, including claims for the events oSeptember 11. However, ACE has added this emergency line in the event of any difficulties reporting claims.

AIG

• 1-973-402-3200.
• 1-877-520-4636.

Allstate Insurance Co.

• 1-800-547-8676.
• 1-800-366-3495.

American Reinsurance

• 609-243-4679.

Chubb Group Of Insurance Companies

All claims except Workers Comp

• 1-800-CLAIMS-0 (252-4670).
• 1-800-300-2538 (fax.)
• chubb.com Click on "Report a loss."

Workers Comp

• 1-800-699-9916.
• 1-800-884-3946.

CNA

• CNA Property and Casualty Claims 1-800 CNA-CALL (262-2255).
• CNA Life and LTC Claims 1-800-437-8854.
• CNA Group Benefits 1-800-523-9139.
• Group Life, Accident, Disability and Long Term Care Programs 1-800- 303-9744.
• Business Property, InjuriesWorkers' Compensation 1-877-CNA-ASAP (262-2727).

Farmers

• 1-888-344-4343.

Geico

• 1-800-841-3000.

The Hartford

• Property-Casualty Damages 1-800-243-5860.

Liberty Mutual

• Commercial claims 1-800-295-3739.
• Personal auto and homeowners claims 1-800-713-7379.
• Life insurance claims 1-800-451-7065, ext.36263.

Nationwide

• 1-800-421-3535.
• Any Nationwide agent.
• nationwide.com.

One Beacon

• Please contact your independent agent, or call One Beacon's toll-free claim number at 1-877-248-7733.

Safeco

• Auto, home, or business insurance 1-800-332-3226.
• Life insurance, deferred annuities, or income annuities 1-877-472-3326.
• Mutual fund accounts through advisors 1-800-528-6501.

Selective

• selective.com.

St. Paul

• 1-800-STPAUL-1 (787-2851).
• stpaul.com.

State Farm

• 1-800-SF-CLAIM (732-5246).
• Your State Farm agent.
• statefarm.com

Travelers

• For business (property and auto) 1-800-238-6225.
• For workers compensation 1-800-842-0240 (a special claims and inquiry number only for this catastrophe).
• For auto and homeowners 1-800-CLAIMS-3 (252-4633).
• For life insurance 1-800-334-4298 (8 AM-6 PM).
• For annuities 1-800-842-9406 (8 AM-6 PM).

USAA

• Life Catastrophe Line 1-800- 531-8455.
• Property Catastrophe Line 1-800- 531-8222.