Preparing for the Worst with Active Assailant Insurance
The coverage was introduced only a few years ago and more companies are now offering it.
Sadly, following incidents like the shootings in Las Vegas, Parkland, Fla., Christchurch, N.Z., as well as numerous shootings in California and up and down the east coast and elsewhere in the U.S. this year and last year, there is now a growing demand for active shooter insurance.
Indeed, since the coverage was first introduced a couple of years ago, more insurance companies are now offering Terrorism coverage not only as a standalone policy, but as an endorsement to their property, liability and business interruption policies.
What's Covered in Active Assailant Insurance?
In general, these are the main features of a standalone policy, though it may be possible to add them to the appropriate property, liability, or package policy as well:
24/7 Crisis Consultancy: Experienced professionals are available (and promptly on-site) to guide management through the aftermath; this includes engaging with victims' families, liaising with authorities and handling media.
Extra Expenses: Policyholders are able to take a proactive role in assisting victims with medical costs, psychiatric treatment and funeral expenses. Staffing, premises or security costs incurred following an attack also are covered.
Business Interruption: Active Assailant insurance recognizes that a premises may not be able to re-open promptly following an attack even if repairs have been completed, and indemnifies accordingly.
Loss of Attraction: Business owners may suffer a significant drop in patronage after a serious attack at their premises. The policy will cover the difference in net revenue.
Liability and Defense Costs: Some General Liability policies are silent on the issue of shootings or feature firearms/terrorism exclusions. The Active Assailant market offers clear protection against damages suits and the defense costs involved.
Property Damage: This policy element often acts as ‘first dollar’ protection. Further market innovation has created a policy that offers Demolition and Rebuild coverage for when a building must be razed following a tragedy.
"One of the most valuable aspects of an Active Assailant insurance program for policyholders is prevention training offered by the insurer," according to Pete Bransden, vice president of Crisis Management at Aspen Insurance Company. "This can range anywhere between providing an Active Shooter e-Learning training module for staff, to carrying out an intensive, on-site simulation exercise and a complete review of written safety policies. Insurers frequently offer significant stipends for such training, if not fund it completely."
Coverage limits may be available up to $25 million. Although originally designed for educational institutions like public and private schools and universities, other entities such as banks, hotels, restaurants, sports venues and amusement parks have been purchasing Active Assailant coverage as well. Some classes of business that may be appropriate include:
- Educational institutions
- Entertainment organizations
- Hotels
- Restaurants and clubs
- Healthcare providers
- Religious institutions
- Retail organizations
- Rodeos, fairs and trade shows.
If your organization or company feels it may be vulnerable to an active assailant risk, please contact us and let us help you assess your situation.
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