Boston Businesses May Lose Insurance Coverage If Bombings Declared Terrorism

Thursday, 25 Apr 2013 01:41 PM

By Courtney Coren

A    A   |
   Email Us   |
   Print   |
   Forward Article  |
  Copy Shortlink
If the federal government officially declares the Boston bombings an act of terrorism, local businesses damaged in the horrific attack may not be able to collect under their current insurance coverage plans.

According to The Wall Street Journal, Congress passed a law in 2002 that would prevent insurance companies from having to pay damages in the event of a terrorist attack.The law states that the U.S. Treasury Secretary along with the Secretary of State and U.S. Attorney General must declare the event an act of terror for the exemption to take place.

In the case of the Boston bombing, “the Treasury has not yet taken this action of certification,” a Treasury spokesperson told the Journal.

The attack on the Boston Marathon is the first time the law will be tested, and businesses are concerned.

While there is some property damage, most claims are expected to reflect the nine-days of “business-interruption” while the bombing area was blocked off for investigation and clean-up.

Businesses do have the option of paying for “terrorism” protection as part of their insurance policy, but it is believed that most of the affected Boston businesses have not paid for the additional coverage.

The damages must exceed $5 million for insurance companies not to be held responsible for payouts.

Business groups are also looking into what kind of federal aid may be available in the event the bombings are officially declared an act of terror.

© 2014 Newsmax. All rights reserved.

   Email Us   |
   Print   |
   Forward Article  |
  Copy Shortlink
Around the Web
Join the Newsmax Community
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
Retype Email:
Zip Code:
Hot Topics
Follow Newsmax
Like us
on Facebook
Follow us
on Twitter
Add us
on Google Plus
Around the Web
You May Also Like

White House Census Changes Mask Obamacare Impact

Tuesday, 15 Apr 2014 13:55 PM

The Census Bureau, the authoritative source of health insurance data for more than 30 years, is revising its annual surv . . .

Tributes Planned to Mark Boston Marathon Bombing

Tuesday, 15 Apr 2014 06:17 AM

The anniversary of the Boston Marathon bombings promises to be a day of tributes to the three people who died, the more  . . .

Obama Having Silent Moment for Boston Bombing

Tuesday, 15 Apr 2014 06:16 AM

President Barack Obama is observing the anniversary of the Boston Marathon bombing with a moment of silence at the White . . .

Newsmax, Moneynews, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, NewsmaxWorld, NewsmaxHealth, are trademarks of Newsmax Media, Inc.

America's News Page
©  Newsmax Media, Inc.
All Rights Reserved