Two World Trade Center insurers have decided the new agreement for rebuilding will not impede their payments to developer Larry Silverstein, said New York City Mayor Michael Bloomberg.
Zurich American Insurance Company and Employers Insurance of Wausau have said the new conceptual framework rebuilding agreement between Silverstein, the Trade Center leaseholder, and city and state authorities will not alter their legal obligations under their insurance policies, according to Bloomberg. “The expeditious rebuilding of the World Trade Center site is too important to Lower Manhattan, New York City, and the country to let hair-splitting legal arguments get in the way,” he said in a recent statement.
In April, Silverstein agreed to turn over to the Port Authority of New York and New Jersey some of the insurance proceeds for rebuilding since the agency took on responsibility for building the Freedom Tower and one other building. Silverstein warned that some of the insurers might withhold funds using the new agreement as a pretext for such legal action.
The agreement between Silverstein and the Port Authority has yet to be finalized, with the insurance question remaining one of the stumbling blocks.
The five remaining insurers who have yet to agree to pay their share are Allianz; Industrial Risk Insurers; Travelers Indemnity, a part of St. Paul Travelers; Royal Indemnity Company, which is part of Royal SunAlliance USA groups; and Gulf Insurance Co., owned by American International Group.
This article originally appeared in The National Underwriter P&C. For the complete article, please click here.
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