Could Your Business Survive an Active Shooter Event?

In light of the recent tragic active shooter event at President Trump’s rally in Pennsylvania, many business owners are left wondering if their insurance would cover such an incident.

This is a very real concern, as many General Liability policies have exclusions for firearms, assault, and other criminal activities.

As an insurance broker, I often get asked about the safest way to ensure coverage for these types of events.

The answer lies in Active Shooter Liability or Active Assailant Liability insurance.

Active Assailant Insurance is an essential component of any risk management strategy concerned with people-risk, business continuity and reputational risk.

Why Consider Active Shooter Liability Coverage?

1. Coverage Gaps: General Liability policies often exclude active assailant exposure, leaving your business vulnerable and without coverage in the event of an active shooter event.

2. Rising Incidents: With the incessant rise in violent events, this coverage has become more important than ever. The catastrophic nature of these events can have devastating effects including a potentially large number of casualties, costly business disruption, property damage as well as legal consequences.

3. Cost-Effective: Generally, this coverage is relatively inexpensive compared to other insurance lines.

High-Risk Industries

Many different sectors can fall victim to attacks perpetrated by disgruntled employees, political activists, criminals, terrorists or “lone-wolf” gunmen. Businesses identified as high risk for active shooter events include:

- Schools

- Places of Worship

- Concerts / Event Centers

- Bars and nightclubs

- Restaurants

- Retail Stores

Important Considerations

1. Risk Assessment: Take a close look at the specific risks related to your business and locations.

2. Policy Details: Know what your current General Liability policy covers and what it doesn’t.

3. Supplemental Coverage: Identify and address any coverage gaps. Proactively add Active Shooter Liability to your insurance portfolio to ensure you’re covered.

4. Preparedness: Develop a comprehensive risk management strategy that includes Active Shooter Liability coverage, as well as risk mitigation plans and loss control measures.

Not All Active Assailant Policies Are Created Equal

I recently had a conversation with an extremely reputable firm specializing in the Active Assailant coverage space.

Here's what their policy covers:

• Legal Liability
• Property Damage
• Accidental Death & Dismemberment
• Loss of Earnings   
• Additional expenses including rest & rehab for both victims and victims’ relatives, salary for both victims and any individual performing duties of a victim, surgical expenses (medical, dental, cosmetic, plastic, etc.), psychiatric expenses for both victims and victims’ relatives, burial costs, child-care expenses, clean-up costs, job re-training expenses, personal financial loss, legal fees, reward monies, temporary security expenses (120 days), etc.
• Crisis Response (Unity Advisory) fees and expenses
• Psychiatric expenses for “virtual witnesses” to an Active Assailant event
• Coverage for Threat Event, Hostage Crisis
• Ingress/Egress, Loss of Attraction, and Off-Site Employee Incident endorsements

• Policy is primary over other existing coverage  

Action Plan

No one wants to think about such horrific events happening to them, but being prepared can make all the difference.

It’s better to understand your potential out-of-pocket liability now, rather than face unexpected costs in the wake of a tragedy.

If you have any questions or need assistance, feel free to reach out to me directly. Let's work together to ensure your business is protected.

Madison.Baker@marshmma.com

214-226-2809