Lucy owns a restaurant in Los Angeles. She heard on the radio that the homeland security threat level has been increased due to anticipated terrorist activities, especially in large cities in the U.S. She will likely not be able to get insurance to cover any losses her business may suffer should an attack occur in L.A.

Question

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This is likely true as insurance companies may view the higher threat level as an increased risk and may be hesitant to provide coverage, or may impose higher premiums that may not be affordable for small business owners like Lucy.

Lucy Owns a Restaurant in Los Angeles