WTC JURY SAYS SWISS RE BOUND COVER WITH WILPROP FORM

The jury in the World Trade Center (WTC) insurance trial yesterday decided unanimously that cover written for the complex by a unit of Swiss Re was based on the Willis broking group’s WilProp form that interprets the September 11 disaster as a single insurable event. Last week, the jury ruled that eight of the 12 carriers involved in the trial had based their cover on the WilProp form, but was unable to reach a decision on Swiss Re at that time. In all, the 12 insurers had a combined WTC exposure of $2.1bn out of the total $3.55bn policy. Yesterday’s ruling was particularly painful for WTC leaseholder Larry Silverstein, as Swiss Re had the leading $877m, or 25%, share of the total policy. Mr Silverstein’s team had argued that WTC cover was switched over to a Travelers form that interprets the WTC disaster as separate terrorist attacks, entitling him to collect double the policy limit. Jacques Dubois, chairman of Swiss Re America Holding, said that the verdict showed that “you cannot change the terms of an insurance contract after the loss”. The jury’s ruling means that Mr Silverstein may not have adequate funds to reconstruct the site and surrounding areas according to the plans that have been drawn up.