There were 41 buildings in the area affected by the blast. One of those businesses is already anticipating around $1 million or more in damages.

My agency is a member of Insurors of Tennessee.  They are our go-to association that assists in our continuing education, protection in government affairs and they offer great support in programs and products that make our agency better.  We receive a weekly email which is The Association Bulletin.  It brings us up to date with Tennessee items that interest us and keeps insurance agencies on the same page for information.

This past week, I saw this item about the horrible bombing Nashville experienced on Christmas morning.  Being in this business so many years, I naturally think of the insurance consequences including how will the losses (claims) be settled, the cost of such and other insurance particulars.  This article interested me and I thought you might like a quick peek into the insurance side of a tragedy like this recent one.

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On the morning of Christmas Day 2020, an individual parked an RV on 2nd Avenue in downtown Nashville and prepared for what appears to be a costly demonstration of his personal beliefs. Around 6:30 am CT, he detonated a bomb from inside the RV, practically demolishing two city blocks and wreaking havoc on a historic area of the city.

Thankfully, Nashville’s first responders arrived in the area and took the “warning” seriously to evacuate citizens. By the time the bomb detonated, most had safely left the area. There were some injuries, but the only loss of life appears to have been the perpetrator. 

Now the residents, business owners and city have had some time to assess the damage. Many buildings – including some historic ones – were badly damaged or even collapsed. Now these residents and businesses face a long recovery period due to what has not yet been declared as an act of terrorism – but rather an explosion or potentially an act of “vandalism” for insurance purposes. 
An “explosion” is a covered loss under most property policies and is often a named peril (defined coverage item). It would not be generally excluded and in some cases may be named as an “act of vandalism” and covered as such. Had this (or if this) is certified as an “act of terrorism” then exclusions would likely come into play. Some businesses in the area may have had a terrorism policy but it is unlikely to be many. Recent reports have stated that the act is unlikely to be certified as an act of terrorism.

There were 41 buildings in the area affected by the blast. One of those businesses is already anticipating around $1 million or more in damages. The Old Spaghetti Factory, which just celebrated 40 years in business at its 2nd Avenue location, anticipates a rebuilding process that will take nine months to one year. In addition, many of the lost or damaged items from the restaurant were one-of-a-kind antiques or collectibles. This includes several chandeliers and a grand piano. 
In addition to the obvious damage to property, other coverages will likely come into play. Ordinance or Law coverage may be needed in cases where the historic buildings must be repaired and renovated to fall in line with modern Metro codes. Business Income/Interruption coverage will certainly be a factor for many of these companies. Did they have extra expense coverage as well? Some may be finding out the difference in having it and not.

And what about those affected by the service outages left after the AT&T data center was damaged? It is doubtful any coverage would be found under Business Income/Interruption coverage, and very few Cyber policies have such coverage. However, some businesses may have an endorsement or even a separate policy for Network Business Interruption coverage. If any of these businesses’ connection outage lasted more than the applicable waiting period, any lost income or additional expenses incurred would be covered in excess of the deductible.

On January 4, the White House and FEMA did approve the disaster declaration for the event, meaning that the city can recoup federal resources for the uninsured, emergency protective measures, debris removal and more.

There are many additional factors still to be determined in the claims process for those that were insured. Hopefully, they had the proper coverages in place to restore both their businesses and this historic section of our State Capital. 

The article was slightly ‘insurance speak’ but you get the idea.  There are many coverages and angles that have to be reviewed in an insurance policy in order to help the victim(s) of that bombing. 

It was a sad Christmas morning and the trouble that act of violence caused will continue to linger throughout most of 2021.

If we can help with YOUR insurance – we want to earn your business!  Please feel free to TEXT or CALL us at 615.377.1212.  You can email us at info@BentonWhite.com.

Please stay safe, healthy and be sure YOUR INSURANCE IS UP TO DATE!