The International Olympic Committee (IOC) has revealed that it is not insured if next year's Winter Olympics in the United States are cancelled because of security fears.
IOC president Jacques Rogge is confident that the Games will go ahead in Salt Lake City in February despite the September 11 attacks and concerns in the U.S. about cases of anthrax around the country.
But IOC vice-president Thomas Bach, a German lawyer, said the IOC had been unable to get insurance for cancellation of the Games because of a "situation of war".
"The IOC chose not to have insurance for cancellation of the Games," the former Olympic fencer told Reuters. "It was not covered in any insurance offered to us."
The insurance of major sporting events has become a huge issue since soccer's world governing body FIFA announced on Friday that AXA, the main insurers of next year's World Cup finals, wanted to renegotiate its policy after the attacks.
AXA had insured the finals in Japan and Korea, sport's most prestigious event after the Olympics, for various risks including terrorism, but the company told FIFA it was no longer prepared to carry the risk following the attacks.
The IOC discussed the issue at a meeting of its ruling executive board in Switzerland last month, and security is certain to be on the agenda when IOC leaders gather again in Lausanne in December, a key meeting before the Games.
"It was decided at the executive board that we would watch the insurance market," Bach said. "What has happened with FIFA shows it was the right decision (not to take out insurance)."
The IOC has earned billions of dollars from selling the television and sponsorship rights for the Games. The income would almost certainly be hit if the event were called off.
The Winter and Summer Olympics, which are both held every four years, have only ever been cancelled because of the two World Wars.
Rogge has made it clear that he wants the Salt Lake Games from February 8-24 to go ahead, saying he believes they provide an answer to the violence and should not be a victim of it.
Security issues are, nevertheless, likely to dominate the build-up to the Games. Local organisers plan a substantial increase in the security budget.
The U.S. Federal Government has appropriated $200 million for security, more than double the amount spent on safety at the 1996 Atlanta Summer Olympics, the last time the Games were held in the United States.
The Winter Games are much smaller than the Summer Games, with fewer competitors and nations represented. Around 2,500 competitors take part compared to 10,000 at the Summer Games.
Rogge has said he regards the Olympic village where the competitors stay as one of the safest places because of all the security. He will break with tradition in Salt Lake and sleep there with the competitors instead of in a luxury hotel.
Security has been a top priority for the IOC since the 1972 Munich Games when 11 Israelis died after an attack on the athletes' village by guerrillas and a shoot-out at the airport. A bomb blast also upset the 1996 Atlanta Games.
Safety is also likely to be a major issue when the next Summer Games are held in Athens in 2004.
The November 17 group has killed 23 Greeks and foreigners since emerging in 1975, while several self-styled anarchist groups regularly launch small fire-bomb attacks in Athens. -Reuters