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South Florida CEO

The price of terrorism – retail

The price of terrorism – retail – Insurance

Mike Seemuth

* The price of insuring against terrorist acts may show up at a mall near you. The nation’s largest shopping mall developer, Indianapolis-based Simon Property Group, just bought $100 million of terrorism insurance for its 251 properties, including seven in South Florida (Boynton Beach Mall, Coral Square in Coral Springs, Dadeland Mall, Miami International Mall, Palm Beach Mall, The Shops at Sunset Place, Town Center in Boca Raton, and Treasure Coast Square in Jensen Beach). Part of the cost of the $100 million policy will be borne by Simon tenants such as Burdines, Dillard’s and Saks Fifth Avenue, some of whom may respond by ratcheting up retail prices. But Simon says the price of its terrorism coverage shouldn’t terrify anyone. The company assures us it negotiated “an acceptable premium” which will “not impose an unreasonable burden on our malls’ tenants.”

COPYRIGHT 2002 Americas Publishing Group

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