September 25, 2001 by Canadian Underwriter
The federal government has stepped in to offer temporary insurance cover to airlines and airports for acts of war and terrorism. The 90-day coverage is a stop gap measure to allow the industry to work out new coverage agreements with insurers.
Following the September 11 terrorist attacks, insurers had said they would cancel existing third-party liability coverage for airlines and airports. Airline industry officials said it would be impossible for the industry to operate without coverage, prompting fears of a shut down.
With the announcement from Transport Minister David Collonette, Canada joins several countries offering government support to airlines. U.S. president George W. Bush is offering a US$15 billion bail out to the airline industry, which includes emergency insurance coverage for a six-month period.
The Canadian coverage will also extend to Air Transport Security Corporation and air traffic control operations.