Westport has dropped its insurance policy against terrorism.

With the federal government willing to cover 90 percent of all costs associated with terrorism-related incidents, the town recently decided to cancel its $21,400 yearly policy with Indemnity Insurance Company of North America.

"We just looked at it and said, if the federal government is out there for 90 percent, you're paying insurance for basically 10 percent of exposure," town Finance Director Gary Conrad said. "We just looked at the cost and at the unlikelihood that Westport would be targeted and decided it wasn't worth it."

Based on Conrad's recommendation, the Board of Selectmen voted unanimously to drop the coverage at its July meeting.

Terrorism insurance became common following the Sept. 11, 2001, terrorist attacks, as Westport and other municipalities sought protection from a potential attack.

Conrad could not specify when the town first took out its terrorism insurance.

Conrad said he checked with several Fairfield County towns and they had all decided to drop their terrorism insurance because of the federal government's far-reaching coverage.