It covers real and personal property including business interruption, rental income, improvements and betterments, extra expense, electronic data processing equipment, valuable papers and accounts receivable, and property in transit, Mr. Haslam said.

Cargill Sherman has in-house binding authority to offer coverage for risks in all U.S. states except Washington, Oregon, Idaho, and Arkansas and for limits of $2.5 million for any one risk, Mr. Haslam said.

He added that coverage for risks in excluded states and coverage with limits of up to $50 million is available on a "prior submit" basis- upon the receipt of special permission from Lloyd's underwriters.

Limits of up to $250 million, he said, are available on an "open market/subscription." On this basis, underwriters who may or may not be part of the wholesaler's binding authority agreement would take a percentage of the individual risks.

Mr. Haslam said the cost of coverage is roughly 0.05 percent of total insurable value for risks outside of city/suburban limits ($5,000 for a $10 million limit) and 0.075 percent for those inside city/suburban limits. He added that different rates apply for New York, Los Angeles, San Francisco, Dallas and a few of the other larger cities.

The standalone terror coverage has a $5,000 deductible on any one occurrence and a 14-day deductible for business interruption coverage.

Cargill Sherman's target insureds include any business with total insurable values less than $10 million, Mr. Haslam said.

He said that target risks for the terrorism coverage are broader than the firm's typical business insuring hotels, motels, bars, restaurants, taverns, pubs, and clubs. They include "really anyone who has terrorism excluded and would like it" or who is in a situation "where the bank is insisting on it to comply with their loan/mortgage conditions."

Mr. Haslam said, however, that there are several classes of businesses that are specifically excluded. These are: transport, military, abortion clinics, bridges and tunnels, judicial, government and religious, he said.