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No Terrorist Insurance For Boston Bombings

After initially avoiding the “T” word, President Obama called the Boston Marathon bombings “an act of terrorism” Tuesday. But the term may not hold up when it comes to insurance coverage. As devastating as it was, it’s unlikely that the Boston attack will be covered under the Terrorism Risk Insurance Program, a system put in place by Congress after the 9/11 attacks in attempt to divvy up catastrophic losses between the U.S. government and private insurers. To qualify for terrorism coverage, property and casualty insurance losses must top $5 million, and experts say the Boston attacks will likely fall short of that figure.