Post-Bombing, Boston Printer's Claim Denied
BOSTON—A Sir Speedy franchise here has found itself in federal court after its insurance company refused to pay a claim on a terrorism clause in the aftermath of the Boston Marathon bombings, the Boston Herald reported.
Sir Speedy Printing of Boylston Street closed for two weeks following the attack and filed a $949,000 claim with its insurance carrier, Public Service Mutual, under its terrorism policy. The carrier refused, however, maintaining that since the attack was never declared an "act of terrorism" by the secretary of treasury, secretary of state and attorney general, it does not owe Sir Speedy any compensation under the terrorism policy.
The amount sought by Sir Speedy Printing is to cover revenue it lost in the months following the bombings, according to the Herald.
Counsel for the printer filed in its complaint that the policy—which the insurer did not provide to Sir Speedy until after the attacks—Public Service Mutual is "required to offer coverage for losses resulting from an act of terrorism that is certified under the federal program as an act of terror.
The Terrorism Risk Insurance Act of 2002 was passed to make insurance available and affordable to businesses, and the printer is accusing the carrier of trying to avoid paying out on a legitimate claim. In its filing, Public Service Mutual outlined 14 defenses for rejection of the claim, the newspaper reported.