The Boston- area public transit agency, the Masssachusetts Bay Transit Authority, has renewed its terrorism insurance designed to reimburse the transportation agency in the event a major terror attack.
The policy includes a $350,000 deductible and would cover up to $500 million in damage to MBTA property, or about 10 percent of the total value of the agency’s trains, stations and other holdings.
MBTA General Manager Daniel Grabauskas told The Boston Globe that after the Sept. 11, 2001 attacks, the possibility of future terrorists attacks can’t be ignored.
“Terrorism is one of those new man-made realities that we need to insure against,” he said.
The Massachusetts Bay Transportation Authority officials said they began purchasing the insurance policy in March, 2004 to prepare for that year’s Democratic National Convention in Boston.
Other transportation agencies including the Massachusetts Highway Department have opted not to buy the insurance while the Massachusetts Port Authority, which operates Logan International Airport, has carried a terrorism insurance policy since before the Sept. 11 attacks.
The Big Dig project and the Massachusetts Turnpike Authority also carry terrorism insurance.
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