We have received several inquiries as to whether the Nashville bombing will result in claims under terrorism insurance pursuant to the Terrorism Risk Insurance Act (TRIA). The answer is “no” right now and “don’t hold your breath for any different answer in the future.”

For a Reader’s Digest history of TRIA, following the billions of dollars in losses from the attacks on September 11, 2001, attacks, Congress passed an insurance program in 2002 which allowed the insurance industry and the federal government to share losses caused by a major terrorist attack. The operative word is “major.”

The law, which has been amended a number of times, requires, in part:

  1. An act of terrorism as part of an effort to influence the policy of the United States.
  2. The act of terrorism to be certified as such by the Secretary of Treasury in concurrence with the Secretary of State and Attorney General.
  3. The triggering event must be a loss of $200 million—this has been substantially raised over the years.

It should be noted that the 2013 Boston Marathon Bombing incident was never declared a terrorist act. That incident was reportedly done for retribution of the Afghan War, killed three people, injured 264 people, was made during a local holiday with thousands of people in attendance and millions watching on television. Similar to Nashville, a crime scene was established, and airspace was restricted. President Obama addressed the country and flags were ordered flown at half-mast.

So, if Boston was not determined to be terrorist act as defined under TRIA, I am not expecting the tragedy in Nashville to be named as one either. Still, claims and losses caused by explosion, vandalism, and possibly losses caused by civil authority should be made.

Thought For The Day

A holiday is an opportunity to journey within. It is also a chance to chill, to relax. It is when I switch on my rest mode.