April 26, 2013
Whether the Boston bombings are deemed a “terrorist” act could have enormous financial implications for the businesses that were damaged or closed during the police investigation.
At the center of the issue is a federal law passed in the shadow of the attacks of 9/11. In Nov. 2002, Congress enacted the Terrorism Risk Insurance Act, which provided insurance coverage for terrorist acts. That means if a special insurance rider was not purchased, and the act is deemed terrorism, the claim will be denied under business policies.
On the other hand, if the bombings aren’t deemed a terror act, affected businesses could then apply for reimbursement under their regular insurance policies.