The recent Boston bombings have brought a sobering reminder to the insurance world about Terrorism Insurance. Business Insurance policies exclude coverage from Acts of Terror unless a special TRIA rider is purchased.
So, many businesses in the Boston area who were affected by the bombings, may find themselves without insurance for property damage and loss of business income if they did not opt for that specific rider.
The Attorney General, Treasury Secretary, and the Secretary of State have to concur that the act was indeed considered Terrorism, meaning it was an act dangerous to human life, property, infrastructure and resulted in damage within the US or US property interests overseas. There are other provisions, but the above in essence is the crux of the matter.
As the investigation proceeds, insurance companies and policy holders are waiting for the verdict. Those who opted for the TRIA coverage will likely not be affected either way, since they have the underlying coverage. However, for those who declined the coverage, the road to financial recovery may be a long time coming if the Boston bombings are deemed an Act of Terror.
Does your business insurance cover terrorism? Call Commercial Global Insurance to review your coverage and discuss your options. 281-930-1600 or contact us on the web at www.cglobalins.com
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