A terrorist attack causes massive property damage, including to an insured business. The adjuster assigned to the claim is sure they've seen something in the policy about terrorism disclosure or terrorism caps, but isn't sure what. In this episode, Tim, Alissha, and Mike will explore the TRIA act which enables coverage for minor terrorism losses, and why it likely does not apply to this scenario.
Notable Timestamps
[ 01: 40 ] - This episode concerns a real-life event, the 2020 Christmas Nashville bombing, in which the individual who set off the bomb died, several others were injured, and many businesses were damaged.
[ 03:15 ] - The "War" exclusion would not apply, as many insurers found out after the attacks on September 11, 2001.
[ 06:17 ] - What is TRIA? The Terrorism Risk Insurance Act made terrorism insurance available to businesses on a voluntary basis, for terrorist attacks certified by the Department of the Treasury.
[ 08:52 ] - Under TRIA, a terrorist attack is dangerous to life, property, or infrastructure; has resulted in damage within the U.S.; was committed as part of an effort to coerce U.S. civilians; results in at least $5M in aggregate damage.
[ 09:45 ] - In the Nashville bombing, the elements of a terrorist attack under TRIA were not met due to the lack of the coercion, amount, and certification elements. Because the TRIA elements are echoed in the policy's terrorism exclusion, this likely means the claim is covered.
[ 13:12 ] - After the Boston Marathon Bombing, many insurers faced the same issues. The event was never certified by the Department of Treasury as a terrorist attack.
[ 14:45 ] - No event has ever been certified in this manner, but terrorism insurance exists and is affordable, so in that sense TRIA has been a success.
[ 15:44 ] - Tim provides a quick recap of the points above.
Your PLRB Resources
Article on Nashville Bombing - https://search.plrb.org/?dn=73725&src=gsa
On-Demand CE Course on Criminal Acts, Terrorism and Liability Claims - https://www.plrb.org/public2/dislearn/description.cfm?mod=p0033)
Overview of TRIA - https://search.plrb.org/?DN=39046
Employees of member companies also have access to a searchable legal database, hundreds of hours of video trainings, building code materials, weather data, and even the ability to have your coverage questions answered by our team of attorneys (https://www.plrb.org/container.cfm?conlink=sec/cq/default.cfm) at no additional charge to you or your company.
Subscribe to this Podcast
Your Podcast App - Please subscribe and rate us on your favorite podcast app
YouTube - Please like and subscribe at @plrb
LinkedIN - Please follow at "Property and Liability Resource Bureau"
Send us your Scenario!
Please reach out to us with your scenario! This could be your "adjuster story" sharing a situation from your claims experience, or a burning question you would like the team to answer. In any case, please omit any personal information as we will anonymize your story before we share. Just reach out to scenario@plrb.org with your story.
Legal Information
The views and opinions expressed in this resource are those of the individual speaker and not necessarily those of the Property & Liability Resource Bureau (PLRB), its membership, or any organization with which the presenter is employed or affiliated. The information, ideas, and opinions are presented as information only and not as legal advice or offers of representation. Individual policy language and state laws vary, and listeners should rely on guidance from their companies and counsel as appropriate.
Music: "Piece of Future" by Keyframe_Audio. Pixabay. Pixabay License.
Font: Metropolis by Chris Simpson. SIL OFL 1.1.
Icons: FontAwesome (SIL OFL 1.1) and Noun Project (royalty-free licenses purchased via subscription).
Sound Effects: Pixabay (Pixabay License) and Freesound.org (CC0).
https://freesound.org/people/tony_bear/sounds/274007/
https://thenounproject.com/icon/trailer-699858/
https://thenounproject.com/icon/fear-4847137/
