FAA extends war risk coverage.(Federal Aviation Administration)(Brief article)

Byline: Dave Lenckus

The U.S. Federal Aviation Administration has extended the war risk coverage it provides U.S. airlines to Dec. 31. The coverage had been scheduled to expire Aug. 31.

Under the program, airlines can purchase billions of dollars of limits to cover hull, passenger liability and crew personal-accident losses resulting from a terrorist attack. The first-dollar coverage costs a fraction of the amount that commercial insurers charge for terrorism coverage.

The amount of limits available to an airline is equal to twice the amount of standard hull and liability coverage it purchases from commercial insurers. The limits of policies …