Back Bay businesses that collectively lost millions of dollars from the Marathon bombings are now counting on the Obama administration to declare that the single most devastating attack on Boston was not, legally speaking, an act of terrorism.
Illogical as that may seem, such a declaration might be the only way these businesses — many of which did not have specific coverage for terrorism — can get reimbursed for their losses by their insurance companies.
“A lot of businesses in the Back Bay will be greatly harmed if they do declare it terrorism,” said Chris Jamison, owner of Lolita Cocina & Tequila Bar near the corner of Dartmouth and Boylston streets. “I basically would have no plan whatsoever.”
The Marathon bombings are the first test of an insurance law Congress passed after the 9/11 attacks caused a record $32 billion in losses. The law requires that the government officially certify whether an act of terrorism has occurred in order to determine liability for losses. If a business did not buy specific terrorism coverage — as many small businesses on Boylston Street did not — an official designation could make it much harder to get reimbursed.
While the law is meant to provide clarity, it is failing to do so thus far in Boston, as it still could take many weeks, if not months, for federal officials to determine whether the bombings constitute terrorism, and longer still before it becomes known who will foot the bill for millions of dollars in losses.
Check out the full article on The Boston Globe