Conclusion 01

Conclusion 01: Widespread Impact of Sept. 11

While only lower Manhattan and the Pentagon came under direct attack a year ago, the events of last September have had a powerful and widespread impact on U.S. business. Aside from the thousands of victims, two thirds of companies saw their business undergo some sort of disruption. Many companies suffered a considerable financial hit in the form of lost income and increased insurance premiums.

A substantial percentage of companies were directly touched by the events of Sept. 11. Twenty-two percent had customers or business partners at the World Trade Center or the Pentagon, and 11% of larger companies had an office in the vicinity. About a third of all companies said their business continuity was definitely affected. Nearly four in 10 respondents reported a significant financial impact from Sept. 11, and that figure rises to two thirds of respondents if "somewhat affected" is included. Affected companies with more than 1,000 employees lost a median of 10% of annual revenues directly because of the attacks; for smaller companies, the figure is 14%. More than three quarters of all respondents saw their property insurance premiums rise due to Sept. 11, and seven in 10 reported increased costs for casualty insurance.

This article was originally published on 09-16-2002
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