The scene after the explosions at the 2013 Boston Marathon
The scene after the explosions at the 2013 Boston Marathon (Aaron Tang via Wikimedia Commons)

A Boston franchisee is suing an insurance company for refusing to cover its lost profits after the Boston Marathon bombings, despite a policy that included coverage for terrorism-related losses.

Atlantic Graphics Ltd. v. Magna Carta Companies Inc. was filed in Massachusetts Superior Court on April 23 and transferred to the court’s business session on April 29.

Atlantic Graphics, which operates under the name Sir Speedy Printing, was closed from the day of the bombings on April 15, 2013, until April 28 of that year. The store was located within a several-block area designated a crime scene and cordoned off so investigators could sift through debris following the bombings.

Two bombs that detonated near the finish line killed three people and wounded 260. Accused bomber Dzhokhar Tsarnaev faces death-penalty charges in a trial slated for November. He’s also charged with murdering Massachusetts Institute of Technology police officer Sean Collier on April 18, while he and his late brother Tamerlan were on the run. Tamerlan, who allegedly acted with Dzhokhar, died from injuries sustained during a shootout with police.

Although Sir Speedy held a terrorism insurance policy, it required that the federal government certify the event as an act of terrorism.

Sir Speedy claimed that a public adjuster who calculates losses for insurance policyholders pegged its lost gross revenue at more than $89,000 for the days the streets were closed. The public adjuster calculated losses of more than $312,000 through July 7 last year. Sir Speedy also claimed that it had lost about $940,000 as of Dec. 17.

Magna Carta, which operates as Public Service Mutual Insurance Co., estimated that Sir Speedy’s loss of business income was $37,900.

“Sir Speedy’s sales have never returned to the level they were prior to the marathon bombings,” the complaint says.

Sir Speedy’s legal claims include breach of contract and breach of the implied covenant of good faith and fair dealing. It also claims two state law violations, of the Massachusetts Consumer Protection Act, which allows triple damages, and the state’s unfair-competition law.

Sir Speedy’s lawyer is Jim Rudolph, managing partner of Boston’s Rudolph Friedmann.

“Everybody calls it an act of terrorism and the charges the government has brought against the alleged perpetrator is for acts of terrorism. That’s why we brought the lawsuit,” Rudolph said.

Magna Carta, which does not have a lawyer in the case yet, did not respond to a request for comment.

Sheri Qualters can be contacted at squalters@alm.com.