Boston attack should be wake-up call to local businesses
MILWAUKEE -- In the aftermath of the Boston Marathon attacks, many people are asking questions about their insurance, wondering if they are covered in the unlikely event of a terrorist attack.
CBS58 spoke with the head of the Insurance Information Institute in New York City. Dr. Robert Hartwig tells us that individual victims in the attacks are covered by their existing policies, from people hurt in the blasts to the owner of the boat where a terror suspect was captured. "That boat probably had bullet holes in it, and the damage will be covered under the owner's policy on that boat," Hartwig said.
Businesses are a much different story. After 9-11, the federal government forced insurance companies to offer terrorism insurance to businesses, in exchange the government would cover the insurance companies from huge losses. "Every business is given the opportunity to buy terrorism insurance," Hartwig said.
But local agents like Jeanne Grisetti with the Philleo Agency in Brookfield tell us that most business are not taking that opportunity, even though the premiums are as cheap as $7 annually. "It's almost like a coupon, if you tell someone they can save 7-bucks, some people will say I refuse that terrorism coverage," Grisetti said.
Hartwig says opting out of terrorism coverage is a bad idea. He says the attack in Boston is proof that an attack can happen anytime, anywhere. And businesses in Milwaukee and Wisconsin should be prepared.