Special research, writing, and analyses by MeiLee Dozier and Gracie Dozier.
Special thanks to Chris Holt MBE, an independent strategic advisor in the Political Violence and Terrorism insurance markets, for his bomb analysis and insurance expertise in this article.
Bottom line up front:
- The US is in a low-intensity but undeniable terrorism/political-violence environment – creating material risk for businesses, civilians, and government personnel, including in mid-size markets.
- Threat profiles are both standardized and boutique: While well-known actors/events exist (e.g., pro-Hamas/Palestine incidents), niche ideologues (e.g., the anti-natalist/“pro-mortalist” Palm Springs bomber) can cause outsized impacts.
- Hotels are exposed as direct and indirect victims: Even when not the intended target, nearby hotels regularly suffer blast/riot spillover that triggers closures, revenue loss, and repair bills.
- Palm Springs case study – three hotels impacted, one uninsured for terrorism: The Velvet Rope, WorldMark Palm Springs, and likely The Weekend sustained losses/closures; The Velvet Rope’s claim was denied because the policy excluded terrorism.
- Financial stakes are non-trivial: The three hotels’ combined loss is roughly $0.71M–$1.01M, based on documented/estimated closures and damage ranges.
- Coverage gap is the core problem: Standard property typically excludes terrorism; TRIA rarely triggers (certification + $5M insured-loss threshold), so standalone terrorism/SRCC (and often Active Assailant) is the pragmatic solution.
- Broker & buyer education is decisive risk control: Policyholders must read/understand limits; brokers have a duty to explain standalone terrorism/SRCC, ingress/egress, and civil authority coverages that would respond to indirect impacts like Palm Springs.
- Action for hotels and brokers now: In the current US climate, price and bind standalone terrorism/SRCC for hotels (including smaller/boutique properties near ideological flashpoints, clinics, bases, or government sites) and consider Active Assailant to cover non-ideological mass-violence events.
An analysis of the 17 May 2025 Palm Springs car bombing reveals significant collateral damage to local businesses, exposing critical gaps in terrorism insurance coverage and highlighting a rising trend of domestic political violence. All available evidence indicates that three hotels near the blast – The Velvet Rope Hotel, the WorldMark Palm Springs, and probably* The Weekend, Palm Springs – sustained damage that forced temporary closure. *We say “probably” because this hotel was partially in the blast radius and closed for approximately two weeks afterward – see technical details below.
The bombing
The FBI Joint Terrorism Task Force reports that on Saturday, 17 May 2025, at 10:49 am, Guy Edward Bartkus, a 25-year-old from Twentynine Palms, detonated a Vehicle-Borne Improvised Explosive Device (VBIED) in a 2010 silver Ford Fusion targeting the American Reproductive Centers, a fertility clinic in Palm Springs, California. The device was placed in the rear parking lot of the target venue. The explosion killed the bomber, wounded four, gutted the clinic, sent shockwaves crashing into nearby buildings, and sent dangerous debris flying over an area of 1,900 feet (aka, “hazardous debris throw range”). The FBI classified the attack as an “intentional act of terrorism.” The explosion killed Bartkus and injured four others. Bartkus’ motive was rooted in an anti-natalist and “pro-mortalist” ideology, a belief that procreation is morally wrong.
The seat of the blast in relation to the impacted hotels
The bomb
Bartkus’ accomplice, Daniel Jongyon Park, allegedly shipped ammonium nitrate to Bartkus in two different shipments – first 180 pounds in January 2025, and then 90 pounds in May, reports ABC News. So, the device might have weighed around 270 pounds. Bilal Essayli, US attorney for the Central District of California, said Park spent two weeks in January-February with Bartkus experimenting with explosives in the latter’s garage, says CBS News. Agent Akil Davis, Assistant Director in Charge of the FBI’s Los Angeles Field Office, says, “Park was in possession of an explosive recipe that was similar to the Oklahoma City bombing,” which was an ammonium nitrate fuel oil (ANFO) device, reports CBS.
The FBI says a weapon and ammunition were found near the wreckage of the VBIED car along with a tripod and smart phone for videoing the attack. The FBI has not released any information on the bomb’s trigger mechanism.
As an aside, the New York Post says that after eventually being arrested, Park killed himself in prison.
The blast caused widespread collateral damage. Channel 3 News reports that Palm Springs Liquor, located just feet from the explosion, sustained over $72,000 in damages, including 56 shattered windows and two rooftop air conditioning units that were shifted 14 inches by the pressure wave. A nearby Denny’s restaurant also sustained damage. Across the street the Desert Regional Medical Center had windows broken in a medical office building facing the explosion, but the main hospital and its emergency department remained fully operational, says NBC Palm Springs.
Bomb blast technicalities
Close-up 1 of the seat of the blast and the blast wave direction that impacted the three hotels
Close-up 2 of the seat of the blast and the blast wave direction that impacted the three hotels
Bomb debris throw range
Hotel damages
The Velvet Rope: A block from the seat of the blast – 460 feet away – the boutique, 3-star, nine-suite The Velvet Rope Hotel, located at 120 W Veredasur, Palm Springs, CA 92262, suffered what its owner, David Rios, described as “catastrophic” damage, says NBC Palm Springs. A one-story building in the target building’s parking lot partially blocked some of the blast wave from hitting The Velvet Rope, but not enough to prevent damages. Rios said, “We were severely impacted by the bomb…the car exploded into the grounds of our hotel…hitting the side walls, the roof, and actually landing in our pool,” reports NBC Palm Springs.
The blast destroyed doors, windows, fencing, and fixtures, with vehicle debris landing in the hotel’s pool. The HVAC system was also wrecked, and the roof was damaged, says The Palm Springs Post. Closed curtains kept flying glass from hitting guests in their rooms. “It looks like we have bullet holes from the metal going through the wood and hitting the body of the property,” Rios told Desert Sun.
A GoFundMe page confirms the hotel sustained structural damage, forcing it to halt operations. The hotel sits within Palm Spring’s “Disaster Overlay Zone” established by the city to assist affected properties, according to the EngagePalmSprings.com. Rios estimated physical damages alone, not including lost guest revenues, might reach $200,000.
The same news outlet says the damages made the hotel unfit for habitation. As emergency responders attended the scene, small neighboring hotels offered to take his guests, and they were all transferred within 45 minutes. The Palm Springs Post reports that the nearby Wyndham Hotel, presumably the WorldMark Palm Springs, a Wyndham-linked property, sent to The Velvet Rope repair teams to help fix broken windows.
WorldMark Palm Springs: The WorldMark Palm Springs resort, a 3-star WorldMark by Wyndham property, located at 1177 N Palm Canyon Dr, Palm Springs, CA 92262, is within the bomb blast’s “Disaster Overlay Zone.” While official city communications confirm some businesses in the area temporarily closed, no public reports or official company statements from Club Wyndham reveal damages to the resort. Analysis of post-blast aerial imagery from ABC News and other outlets does not show obvious external damage, though its proximity to the blast – 354 feet away – suggests it was likely affected by the shockwave.
Why this? Additional analysis discovered that, immediately following the blast, the hotel took no reservations for several weeks, possibly 25-days, up to 14 June (see reviews from June here), indicating the hotel was apparently closed for business for about three weeks. Additionally, it might be that some of the resort’s rooms were open for business while others were closed for repairs. A one-story building in the target building’s parking lot appears to have, to some extent, shielded the WorldMark from being directly impacted.
The Weekend, Palm Springs: Muir Analytics estimates that the boutique, 10-room The Weekend, Palm Springs hotel, also suffered damages. The Weekend is an adults-only hotel and ranked by several hospitality sites as a 3-star property. Located at 111 S Vía Las Palmas, Palm Springs, CA 92262, this hotel is just 10 feet north of The Velvet Rope and 520 feet from the seat of the blast.
The Weekend was partially blocked from the full effects of the blast by The Velvet Rope. Like the other two hotels mentioned here, The Weekend is within the bomb blast’s “Disaster Overlay Zone.”
As of 28 August, about 15 weeks from the day of the blast, this property was not accepting bookings, indicating that its revenue losses are continuing. There is no public information or reporting that indicates The Weekend hotel is closed for any other reason, such as financial issues, a change in ownership, or other maintenance problems. The timeline and circumstances of its closure strongly correlate with the aftermath of the May 17 bombing.
Loss estimates
The Velvet Rope Hotel: Estimated total loss: $382,250.
- This is based on, A) the hotel’s nine suites, B) an estimated average nightly rate of $225, and C) a 90-day closure estimated for repairs. (As of 28 August 2025, the hotel appears to be accepting bookings on its website).
- Possible damage and repair costs ($200,000).
WorldMark Palm Springs: Estimated total loss: $144,018 – $411,480.
- This is based on, A) the resort’s 81 rooms, B) an estimated nightly rate of $254, and C) a 20-day estimated closure for repairs. A more conservative estimate of a week’s closure – based on the fact that a nearby Denny’s was closed for just a week – would have been a revenue loss of $144,018.
- Possible damage and repair costs unknown.
The Weekend, Palm Springs: Estimated total loss: $186,300 – $217,350, & possibly climbing.
- This is based on A) the resort’s 10 rooms, B) an estimated nightly rate of $207, and C) a 90-day closure is estimated for repairs.
- Possible damage and repair costs unknown.
The Velvet Rope insurance dispute
NBC Palm Springs says that Rios had his damage claim denied by his insurer. Rios stated, “Our insurance that we pay thousands of dollars a month for is now rejecting all of it,” because the policy did not cover acts of terrorism. Rios said his insurance company told him if he disputed the denial, he risked losing all his insurance coverage. “They basically threatened me,” Rios told NBC. “If I dispute it, they won’t insure me next year.” What additionally troubled Rios was that his premiums had recently gone up $13,000.
Property insurance routinely excludes terrorism. The government backstop TRIA is designed for macro attacks, so this type of event requires a commercial solution, which is widely available. There is an obligation for brokers to better engage with businesses about the availability, benefits and costs of terrorism, political violence, and strike/riot/civil commotion (SRCC) insurance policies.
This left Rios, and possibly other business owners, facing substantial rebuilding costs out-of-pocket, a situation that ultimately prompted the City of Palm Springs to establish a public recovery fund.
Morgan Shrubb, AXA XL’s Head of War, Terrorism, Political Violence, and Film & Media, Americas, says, “It’s required by law for property and casualty carriers to offer TRIA on all their quotes, so The Velvet Rope hotel owner was most likely offered terrorism coverage.”
Shrubb says, “TRIA is the US government’s insurance program that requires commercial insurers to offer terrorism coverage for certified acts of terrorism.” She further explains that the Secretary of the Treasury, the Secretary of Homeland Security, and the Attorney General must all three certify an act of violence to be terrorism, regardless of how the FBI might label an incident. And the act must cause at least $5 million in insured losses to be considered a TRIA incident. “In the history of the program, says Shrubb, it’s never made a payout.”
She further explains, “So, what we at AXA XL do, and what the market does, is we offer a standalone terrorism policy, and it includes TRIA in case that gets triggered, and then there’s our cover trigger, which is property damage caused by political, religious, and/or ideological intent.”
AXA XL’s terrorism coverage doesn’t just pay for property damage and business interruption. Shrubb says, “What’s also included in our policy is Ingress/Egress Coverage and Civil Authority Coverage. And that covers you if there is an attack, not at your location, but next to or near it, but one that still has an impact on your property.”
“For example,” She says, “If you look at the Pulse Nightclub attack,* it was in a shopping area, and right after the attack, scores of nearby retail businesses had to shut down.” Sixty businesses had to temporarily close, says CF Public. “So, we’d provide loss of income for the businesses that one couldn’t enter or exit. And a similar concept would apply to the Palm Springs bombing-hotel situation, if they were covered with AXA’s kind of terrorism coverage.” *Orlando, Florida, 12 June 2016, ISIS mass shooting, 49 killed, 53 wounded.
“What we hear sometimes from clients is, ‘well who’s ever going to target me…I’m not a high risk’.”
“When its relevant, we tell them, ‘well here’s your neighbor…for example, a high-rise hotel in downtown Chicago next to the Sears Tower, or the Chrysler Building in New York, or Times Square. Terrorists target these big places. And you’ll have losses if they get hit.”
“And I’ve actually quoted accounts where they’re small hotels, like motel-size hotels looking for terrorism coverage because there’s a Planned Parenthood or an abortion clinic right next door. And the same goes for hotels on or next to military bases and government facilities.”
US SRCC is elevated
The Palm Springs attack occurred amid a broader climate of civil unrest and political violence in the US, underscoring the need for specialized insurance coverage. Multiple, highly organized pro-Hamas/Palestine and anti-Israel/Jewish protests, along with far-left street violence, have become undeniable realities. In addition, scores of lower-intensity but still disruptive demonstrations – such as the Climate Defiance activists crashing the Democratic National Committee meeting at the Gaylord National Resort and Convention Center in Washington, DC, on 31 January 2025 – illustrate the threat. That incident, well documented on video, showed protesters intimidating hotel guests and engaging in assault-and-battery scuffles with hotel security.
US terrorism is elevated
The Palm Springs bombing is also part of a broader pattern of escalating domestic terrorism in the US in 2025. Both the FBI and the Department of Homeland Security – under the Biden and Trump administrations – have issued continued terrorism warnings since Hamas’ 7 October 2023 mass-murder raid in Israel that inspired terrorists and political activists into action, including the US. According to federal assessments, the primary threat stems from Islamist jihadism, followed by far-left and far-right domestic radicals. Iran, a radical Shia Islamist theocratic dictatorship, also remains a persistent external threat. Listed below are terrorist incidents in the US from the beginning of 2025 through the 17 May Palm Springs bombing,* which collectively illustrate the evolving threat landscape. *Does not include pre-2025 violence.
- New Orleans vehicle/shooting/attempted bombing attack, New Orleans, LA, 1 January 2025, ISIS.
- Trump Hotel Las Vegas bombing, Las Vegas, NV, 1 January 2025, far right-wing.*Although the attacker claimed his operation was not terrorism, he detonated an IED at a hotel and injured numerous civilians for a niche but right-leaning ideology, making it terrorism.
- At least six attacks on Tesla vehicles or dealerships between January and March 2025, various locations in the US, with some perpetrators – clearly ideologically motivated – reportedly being prosecuted under terrorism-enhanced charges, far left-wing.
- Arson attack, Pennsylvania Governor’s Mansion, Harrisburg, PA, 13 April 2025, far left-wing/pro-Hamas/pro-Palestine.
It should be noted that since the Palm Springs attack, there have been at least nine acts of violence – including assassinations and organized raids involving firearms or other weaponry – that qualify as terrorism under US legal definitions. They are listed below:
- Assassination of Israeli diplomats, Washington, DC, 21 May 2025, pro-Hamas/pro-Palestine.
- Assassination of Minnesota state representatives, homes of state reps in Brooklyn Park & Champlin, MN, 14 June 2025, far right-wing.*Some commentators believe there were personal motives for this violence, but the attacker’s anti-abortion ideology cannot be dismissed, so it is currently categorized as far right.
- Molotov and flamethrower attack on Jewish/pro-Israel rally, Boulder, CO, 1 June 2025, pro-Hamas/pro-Palestine.
- Military-style raid on ICE facility, Alvarado, TX, 4 July 2025, far left-wing.
- Military-style raid on ICE facility, Portland, OR, 4 July 2025, far left-wing.
- Military-style raid on ICE facility, McAllen, TX, 7 July 2025, far left-wing.
- Terrorist/financial donor made bomb,* Long Beach, CA, 2 August 2025, ISIS. *Photos from the press show details on what appears to be a functional explosive device packed with ball bearings as shrapnel.
- Mass shooting, Annunciation Catholic Church and School, Minneapolis, MN, 27 August 2025, far left-wing.
- Assassination of political activist Charlie Kirk, Utah Valley University, Orem, UT, 10 September 2025, far left-wing.
As an aside, this list does not include domestic terrorist attacks or generalized political violence prior to 2025, which featured a greater number of far-right incidents. Far-right terrorism in the US is a real threat, and violence from this sector remains a continuing possibility.
Takeaways
There are seven takeaways. First, while the exact technical details of the VBIED are not known, the tactics were nonetheless highly effective. The bomb, which may have weighed approximately 270 pounds, destroyed the fertility clinic and caused moderate to light damage to surrounding businesses, including hotels located hundreds of feet away. Information released by the FBI as of 16 September 2025 indicates that the ammonium nitrate used in the device was probably impure and likely mixed with fuel oil – the “FO” component of ANFO. There is no information yet on what the booster explosive might have been (the high-explosive compound required to detonate the ANFO).
Based on the estimated weight of the device, the damage to The Velvet Rope, and the presumed compound used, the explosion’s Velocity of Detonation (VOD) is estimated at ≈13,500 ft/s. The blast wave may have produced between 0.02 and 2.1 pounds per square inch (psi), enough to cause injury or death and to inflict substantial property damage.
Second, strategically, the attack was a failure because the anti-natalist and “pro-mortalist” ideology was not advanced by this act of violence.
Third, the rapid response of the Palm Springs hotel community – rallying around The Velvet Rope and assisting its guests within 45 minutes – demonstrates exceptional crisis management and a strong commitment to guest care.
Fourth, while additional details are needed to make a definitive assessment of the insurance dispute, informed speculation is warranted as a preventive lesson. Morgan Shrubb says, “It could have been any number of things. The Velvet Rope hotel owner might have bought TRIA which isn’t adequate for his situation because it wasn’t a TRIA-qualified attack, or he declined it. And insurers offer TRIA for free on smaller policies, so maybe the hotelier had TRIA, and he thought this coverage was adequate.”
Fifth, to prevent such friction, policyholders must read and understand the policies they purchase. If the language is confusing or sounds like doublespeak, which is not uncommon, they should seek clarification from their broker.
Sixth, to add redundancy in preventing such friction, it is critically incumbent upon brokers to educate policyholders and ensure they understand, in plain English, what their policies do and do not cover. As an aside, this is something Lloyd’s of London’s Blueprint One and related commentary in the press have urged insurers to do for years. *Blueprint One was Lloyd’s initiative to encourage underwriters and brokers under its umbrella to make qualitative, quantitative, and technological improvements to modernize the London insurance market and expand its share of the international market beyond the United States.
Says Shrubb, “The biggest thing is education. Specifically, regarding TRIA, a lot of professionals in the insurance industry, including underwriters, think it pays claims. And a lot of brokers think TRIA offers adequate coverage until they learn otherwise.”
Shrubb adds, “Lots of people think, ‘it won’t happen to me. I’m not a terrorist target.’ But as Palm Springs shows, you don’t have to be a direct terrorist target to suffer from terrorism. And there’s a lot more terrorism and political unrest around the world and in the US today, so terrorism coverage is necessary. Especially for hotels. They’re big, soft targets. AXA XL pays all sorts of claims out on hotels globally – they’re some of our largest losses.”
Seventh, as political violence and terrorism have increased in the US, SRCC and terrorism coverage should not be dismissed by US brokers or policyholders. Even smaller communities such as Palm Springs should carefully consider such coverage. Here’s why:
On one hand, Palm Springs is a mid-sized town of roughly 45,000–50,000 residents and might not seem like a likely target for SRCC agitators or terrorists. On the other hand, Palm Springs has a large Jewish community of about 20,000, and because Jews in America remain the number one target for political violence, according to 2023 and 2024 FBI warnings, terrorism and SRCC coverage for any business in Palm Springs should be strongly considered. While the likelihood of an anti-natalist or pro-mortalist terrorist group detonating a bomb in Palm Springs was exceedingly remote, the broader rise in SRCC and terrorism incidents across the US makes such coverage highly prudent. This upward trend, even in non-major cities, is a growing factor that organizations should now account for.
What hotel insurance lessons can be learned from the Palm Springs bombing? Says Shrubb, “Hoteliers can ask for a standalone terrorism quote, covering violence driven by political, religious, or like ideological issues. And they can ask for an active assailant quote. Active assailant is a premeditated attack without the political religious ideological intent. This would include things like school shootings, or mass shootings driven by mental health or criminal issues.”
Muir Analytics runs the world’s largest, most sophisticated hotel violence database – the SecureHotel Threat Portal – with over 3,600 hotel attacks (and growing). We can provide the hospitality, insurance, and law enforcement/government sectors with intelligence that facilitates full-spectrum risk reduction, which helps hotels protect guests, staff, buildings, brands, and revenues. Contact us for a consultation: 1-833-DATA-444.
Sources and further reading:
“FBI arrests man in California for allegedly attempting to provide financial support to ISIS; explosives seized,” New York Post, 2 August 2025.
“10 charged in Independence Day ambush on ICE detainment facility,” USA Today, 8 July 2025.
“Officer shot and man with rifle killed after exchange of fire at Border Patrol facility in Texas,” CNN, 7 July 2025.
“Four Defendants Charged with Assaulting Federal Law Enforcement Officers and Other Offenses During Civil Disorder at Portland ICE Facility,” United States Department of Justice, 5 July 2025.
“Suspect in custody in violent attacks in Old Town Portland, police say,” KATU, 4 July 2025.
“Woman dies from injuries suffered in Boulder Molotov cocktail attack,” Newsweek, 30 June 2025.
“Alleged co-conspirator in Palm Springs fertility clinic bombing died in federal custody by jumping from prison’s upper level/report,” New York Post, 26 June 2025.
“What we know about the attack on two Minnesota lawmakers,” BBC, 16 June 2025.
“‘No Kings’ protests see major crowds, violence in some states,” Newsweek, 15 June 2025.
“Demonstrations, riots spread beyond L.A. with help of left-wing organizers,” Washington Times, 11 June 2025.
“Palm Springs Liquor shares recovery journey weeks after bombing,” KESQ, 5 June 2025.
“Alleged co-conspirator in fertility clinic bombing shipped nearly 300 pounds of ammonium nitrate: Officials,” ABC News, 4 June 2025.
“Man charged in Palm Springs fertility clinic bombing after being arrested by FBI at New York’s JFK airport,” CBS News, 4 June 2025.
“Man sent chemicals to suspect in California fertility clinic bombing: FBI,” BBC, 4 June 2025.
“What we know about the attack in Colorado,” BBC, 3 June 2025.
“One person dead after ‘intentional’ explosion near fertility clinic in Palm Springs,” NBC Palm Springs, 2 June 2025. (No hyperlink available).
“Witnesses say attacker in Boulder, Colorado attack shouted ‘free Palestine’,” WHAS 11, 2 June 2025.
“FBI Joint Terrorism Task Force Update to Investigation of May 17 Palm Springs Vehicle Explosion,” Federal Bureau of Investigation, 23 May 2025.
“Palm Springs businesses’ insurance claims denied after bombing,” CBS News Los Angeles, 23 May 2025.
“Working to rebuild: City pledges aid for businesses that were most damaged in bombing,” The Desert Sun, 23 May 2025. (No hyperlink available).
“Two Israeli diplomats about to become engaged gunned down in Washington,” TPS-IL, 22 May 2025.
“City pledges aid for Palm Springs businesses that were most damaged in bombing,” Desert Sun, 21 May 2025.
“Palm Springs business owner denied insurance after terrorist bombing rocks hotel,” NBC Palm Springs, 20 May 2025.
“Act of terrorism in Palm Springs,” City of Palm Springs, 19 May 2025.
“Businesses face uncertainty in wake of bombing as repairs begin, investigation continues,” Palm Springs Post, 19 May 2025.
“Insurance claims following attack,” NBC Palm Springs, 19 May 2025.
“One person killed, multiple injured after explosion near Desert Regional Hospital in Palm Springs,” NBC Palm Springs, 17 May 2025.
“Police say Palm Springs car blast was an ‘intentional act of terrorism’,” YouTube via NBC Palm Springs, 17 May 2025.
“Alleged arsonist targeted Pennsylvania Gov. Josh Shapiro over Palestine, search warrant says,” ABC News, 16 April 2025.
“Climate activists struggle with security at DNC ahead of chair race,” News2Share, 30 January 2025.
“Soldier who blew up Tesla at Trump hotel left note saying blast was to be a ‘wake up call’ for US,” Associated Press, 3 January 2025.
“GMU student charged in mass-casualty plot targeting Jews,” Washington Post, 18 December 2024.
“Intersection: The impact of the Pulse shooting on area businesses,” Central Florida Public Media, 5 July 2016.
Risk Management Series, Risk Assessment, “A How-To Guide to Mitigate Potential Terrorist Attacks Against Buildings,” FEMA 452, January 2005.
Risk Management Series, “Site and Urban Design for Security, Guidance Against Potential Terrorist Attacks,” FEMA 430, December 2007.
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