Businesses in the United States don’t want to purchase terrorism policies, according to a report from insurers. The Council of Insurance Agents and Brokers (CAIB) says about 80% of medium-sized businesses are not purchasing terror insurance because of the high costs involved and the fact that they don’t feel like they’re facing a substantial risk.

CIAB President Ken Crerar says the survey showed that despite the US Government’s introduction of the Terrorism Risk Insurance Act, there are still significant gaps in coverage throughout the US.

“The market is significantly more stable with the Act than without it, but cost and availability of coverage remain key issues,” he said. “Small, relatively low-profile accounts seem to be able to find terrorism coverage at a reasonable cost, but many are opting not to buy it because they don’t think they’re at risk.

“On the other hand, some of the riskier operations with real exposures choose to do without coverage because of the cost.”

Another reason for commercial businesses not purchasing terror policies is because they believe the coverage is not broad enough. Some businesses have argued that biological and nuclear attacks should also be covered by insurers.