Insurance Costs Soar For Contractors in Iraq

Insurance companies are raising rates for companies with staff in Iraq, following a spate of attacks against American civilians working in the country.

According to a story that ran in the San Mateo Times on the weekend, violence such as the ambush of four security contractors in March in Fallujah and a car bombing in June that claimed the lives of three General Electric contractors, some companies have seen insurance rates more than double. The story, by Adam Gellar, entitled: "Iraq Insurance Costs Escalate," reports that one company with staff in the region is now paying nearly $15,000 per employee per month, up from $5,600.

"Federal law requires government contractors to take out some death, disability and medical insurance for workers assigned overseas, and reimburses insurers if a worker is killed or injured," writes Gellar. "Many have taken out more insurance than required by law as a way to attract and reassure workers, and then were forced to keep workers in the country months longer than planned because of circumstances including violence and sabotage."

More recent atrocities committed by militants, such as the unspeakable murder last week of Paul Johnson by militants in neighboring Saudi Arabia, are expected to increase rates further.

According to sources in the story, if rates continue to increase, they may drive smaller contractors out of Iraq's reconstruction altogether.

"The costs are difficult to ignore," writes the author. "Particularly for smaller companies."

To read the full version of the story, visit: http://www.sanmateocountytimes.com/Stories/0,1413,87~11271~2218355,00.html.