From schools and grocery stores to movie theaters and nightclubs, active assailant events with mass casualties have become far too familiar. Although traditional insurance coverage like property and casualty can provide a layer of security in the wake of these tragedies, there can be sizable coverage gaps when it comes to active assailant incidents.
As the frequency of these events increases, business owners may wonder what steps they should take to prepare for the unexpected. These disasters wreak terrible havoc on victims and can also have long-lasting effects on businesses. We can’t predict when an incident will occur, but companies can prepare for the worst by considering active assailant insurance to address any gaps left by traditional insurance.
What is Active Assailant Coverage?
Active assailant coverage, also referred to as active shooter or deadly weapons coverage, aims to complement general policies that may only cover some of the impact of a devastating event. These policies address potential risk, provide recovery support after an incident, and help create a concise plan of action in response to the threat of assailants. They typically cover insured persons present at the event’s location, including customers, employees, and contractors, and cover various costs related to victim support, incident response, property and non-physical damages, and more.
Types of Coverage
Assailant policies split coverage into two categories: first-party and third-party.
First-party coverage includes:
- Property damage: This helps the facility owner pay for repairs to property damaged as a result of the incident.
- Denial of access and loss of attraction: Even if a business doesn’t suffer physical damage, an event that results in bodily injury or physical damage can negatively impact the insured business, leading to financial loss. Loss of attraction products can provide support for potential long-term economic consequences due to a loss of business.
- Business interruption: If a business’s daily operations are interrupted, this coverage can provide financial support during the downtime.
- Crisis management: How a business responds to an incident is critical. The insured may need to cover costs for hiring consultants, a public relations firm, or crisis management professionals to assist in navigating the aftermath.
- Medical expenses: Active assailant events can traumatize victims, requiring counseling and psychiatric care. A business’s policy may cover the victims’ medical expenses.
- Additional expenses: Reimbursement for security response, forensic cleanup, and relocation costs
Third-party coverage includes:
- Legal liability and litigation: Businesses are held at a high standard of accountability for public safety measures for employees and customers. If a business fails to uphold its “duty of care,” it could potentially be held legally responsible for certain damages and claim expenses incurred from the active assailant event. A business’s policy may cover the legal fees that are accumulated.
Prepare for the Unexpected
Unfortunately, any place can become an assailant’s target, and it is impossible to predict if or when an incident may happen. How organizations prepare for and respond to incidents can make or break the business. Active assailant insurance is becoming more than a nice-to-have; it’s a must-have in today’s world. Businesses should consider any potential risk that they may face and work on preventative measures to reduce the possibility of loss of life, property damages, injuries, and more.
Quaker Special Risk offers a wide range of insurance policies, including active assailant insurance. We have a comprehensive offering of pre-loss services, including consultants who can assist in establishing preventative measures, and post-incident services, like crisis management resources. Our focus is ensuring that organizations are equipped to handle the unpredictable. Contact us today to learn more.
