Aftermath of The September 11 Attacks - Claims

Claims

The attack on the World Trade Center led to huge insurance claims, with many insurance companies throughout the world having to disclose the impact of the attack in their financial statements. In April 2004, a jury of the United States District Court for the Southern District of New York rejected claims by World Trade Center leaseholder Larry Silverstein that two planes hitting the Twin Towers should, within the terms of his insurance policies, be considered two separate incidents, which would have entitled him to $7 billion in insurance reimbursements. The insurers, Swiss Reinsurance Co. and others, initially argued successfully that the attacks in New York were one incident and that Silverstein was only entitled to $3.5 billion. In December 2004, a federal jury decided that the September 11 attacks attack on the World Trade Center was, for insurance purposes, two occurrences, which means that Silverstein stood to collect up to $4.6 billion.

In 2003, Judge Alvin Hellerstein of the United States District Court for the Southern District of New York agreed to hear a consolidated master case against three airlines, ICTS International NV and Pinkerton's airport security firms, the World Trade Center owners, and Boeing Co., the aircraft manufacturer. The case was brought by people injured in the attacks, representatives of those who died, and entities that suffered property damage. In September 2004, just before the three-year statute of limitations expired, the insurers for the World Trade Center filed suit against American Airlines, United Airlines, and Pinkerton's airport security firm, alleging their negligence allowed the planes to be hijacked. Because the Air Transportation Act, which was passed after September 11 attacks, limits the liability of airlines aircraft manufacturers, and airports to the amount of their insurance coverage, this case will likely be combined with the consolidated master case filed in 2003.