(PRWEB) February 8, 2003
KISSIMMEE, Fla., February 8, 5:00 am Â The Kissimmee Utility Authority (KUA) Board of Directors on February 5 approved the purchase of terrorism insurance to protect the utility's $360 million infrastructure from a potential attack.
"Because we serve the #1 tourist destination in the world, our insurance carriers have identified our service area as a high-risk target for potential terrorist activity," said KUA board chairman Larry Walter. "Should terrorists strike, we now have a system in place to address financial losses without putting a strain on the wallets of our customers."
KUA's ability to purchase the insurance was made possible by the Terrorism Risk Insurance Act of 2002 which was signed by President Bush on November 26, 2002. The Act provides coverage for catastrophic losses from terrorist attacks.
The new law provides for a system of shared public and private compensation for insured commercial property and casualty losses arising from acts of terrorism. Under the plan, 90% of the losses above the policy deductible would be covered by the federal government with the insurer paying the remaining 10% of losses. The program will be administered by the U.S. Treasury Department and will remain effective through December 31, 2005. KUA's cost to purchase the policy totaled $114,153.
The policy, however, does not include acts committed in the course of a war declared by the U.S. Congress.
KUA operates two power generation facilities - Cane Island Power Park and Roy E. Hansel Generating Station - that serve the energy needs of Osceola County residents as well as the residents of 14 other cities throughout Florida.
Founded in 1901, KUA is Florida's 6th largest community-owned utility serving 58,000 electric, water and internet customers in four Central Florida counties.