For one local company, the destruction of the World Trade Center in New York has a direct impact. Among the far-flung insurance operations of Great American Insurance Co. was workers' compensation coverage for the Windows on the World restaurant, a company spokeswoman said.

        Located on the top of one of the towers, the restaurant employed about 70 workers, many of them now missing. Great American, part of Carl Lindner's financial empire here, included the impact from those workers' comp policies in its estimate of up to $20 million in losses from the terrorist attacks, a spokeswoman said.

        That is after “reinsurance,” or policies taken by insurers to cover losses. Reinsurance has become one of the first insurance impacts of the terrorist attacks.

        Many reinsurers are now writing exclusions for acts of terrorism into their policies, meaning they will not cover claims from terrorist acts.

        And it appears the federal government will cover those losses. Legislators on Capitol Hill are discussing a federal fund to cover reinsurance claims springing from terrorist attacks, several industry insiders said.

        Without the government help, insurers could refuse to write policies including terrorist acts. Without that protection, customers might have problems getting bank financing.

        Have a tip about a Tristate company that should be included in our Buzz? Call 768-8147 or e-mail business@enquirer.com.

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