Ground Zero Workers` Compensation at Risk

Dozens of insurers claim they were notified too late for them to honor $350 million in policies covering sick workers at Ground Zero in New York.

The insurers say the World Trade Center Captive Insurance Co., run by the Bloomberg administration, failed to promptly notify them they could be responsible for claims covering workers with diseases resulting from toxic exposure from the Sept. 11, 2001, attacks, the New York Post reported Sunday.

Attorneys for 10,000 police, firefighters and other rescue workers call it a major blunder on Captive's part.

"Their failure jeopardizes the ability to get the full compensation available for these heroes," said Paul Napoli, who is threatening to sue Captive on behalf of his injured clients.

Captive attorney James Tyrrell, whose law firm has been paid millions from the city-run $1 billion Ground Zero fund, said Captive bore no responsibility to notify insurance companies.

Sen. Patrick Leahy, D-Vt., chairman of the Judiciary Committee, and Sen. Arlen Specter, R-Pa., have threatened to hold hearings on how Captive has handled the fund's money.