Insurance Companies Delay Payment in Rebuilding the World Trade Center

Scott Smith

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Construction workers along with builders protested two insurance companies delay in funding the construction to rebuild the World Trade Center. As reported on March 14, 2007, Trade Center Developer Larry Silverstein, Port Authority of New York and New Jersey, Executive Director Anthony Shorris, lawmakers and labor leaders rallied outside the National Association of Insurance Commissioners meeting claiming insurer's Allianz and Royal and Sun Alliance U.K. are delaying the rebuilding of the World Trade Center.

The insurance companies named are among a group of insurer's who have failed to pay their contribution of $4.6 million in insurance monies owed to design and rebuild the five office towers on the sixteen acre site. Allianz and Royal and Sun Alliance U.K. are claimed to owe $800 million according to Edward J. Malloy, President of the Building and Construction Trades Counsel of Greater New York.

The insurer's will reportedly fight tooth and nail to avoid paying legitimate debts, a criticism heard about many property and casualty insurance companies around the country. As a result, the Port Authority, which owns the Trade Center site, sued several insurer's that did not abide by their duty to pay the monies owed. In response, the insurer's, instead of accepting responsibility for the debts owed claimed the developers had enough money to redevelop ground zero.