Delaware Business Insurance Update from CNC Insurance Associates Inc. 4-30-13, "Confusion over Terrorism Coverage in Boston"

In the aftermath of the terrible bomb explosions at the Boston marathon, coverage under insurance policies will ultimately depend on the definition of terrorism. Many business owners purchased the coverage and many business owners did not. If the bombing is ruled as an act of terrorism that triggers coverage then those that have it can file claims. Those that did not have the coverage would not have the use of their insurance policies. Even though the President ruled it an act of terror, coverage still may not be triggered. Under many policy forms the U.S. Treasury Secretary & U.S. Attorney General also have to declare an act of terror. So right now business owners are waiting to see if this will happen. Small business owners in Boston are on pins and needles waiting for the interpretations and definitions to be clarified so they can determine if they have coverage or not. This is a clear indication that the whole terrorism coverage issue needs to be more concise and understandable in case this ever happens again. We hope that it never does. Until next time be careful out there and know your risks.

G. Kevin Nemith- President CNC Insurance Associates & the Small Business Insurance Center
Serving Delaware, PA, NJ, MD, and Va.
www.cncinsurance.com
www.bizinsurancetv.org

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