Monday’s attack affected hundreds of lives and businesses struck by the tragedy. Insurers and reinsurers will undoubtedly face claims and losses in the wake of Monday’s devastation. What follows are some of the insurance issues likely to arise in the aftermath of the bombing. We don’t yet have answers to these issues, but as the claims and factual investigations develop, so too will the coverage issues.
- Will there be lawsuits filed against the Boston Athletic Association (BAA), which manages the Boston Marathon, or is the BAA subject to any statutory immunities because of its non-profit status?
- Are the Marathon sponsors and their insurers likely to be the focus of claims in the months ahead?
- Did the businesses that suffered damage during the attack have terrorism coverage or did their policies exclude such coverage?
- Will the attack trigger the federal backstop under TRIA?
- What effect does President Obama’s declaration that the attack was an “act of terrorism” have on terrorism coverage?
- Does it matter, for purposes of triggering terrorism coverage, whether the individuals or organizations ultimately found responsible for the attack are foreign or domestic?
- Will there be coverage under event cancellation policies for the various events (such as Celtics and Bruins games) that were canceled and/or rescheduled?
- Will there be business interruption and contingent business interruptions claims due to the income businesses lost as a result of the attack?
- How will the waiting period deductibles and the Patriots Day holiday, which led to the closure of many businesses on Monday, affect business loss coverages?
- Will there be civil authority and/or ingress/egress coverage for claims stemming from the closure of certain areas around Boylston Street and the Copley Square train station?
Clearly, the Patriot’s Day attack will affect the insurance industry. The scope and extent remain to be seen. We will be certain to follow developments, and invite your input and questions.