Following on from our overview in January’s bulletin, coverage continues to evolve to respond to this developing risk environment. The recent events in London emphasise more than ever the real and present threat globally of active shooter/assailant attacks.

As of 4 April, there have already been 82 mass shootings in the US alone in 2017. In addition to the high casualty rate (2016: 15,063 deaths and 30,614 injuries*), the financial hit to businesses and institutions from liability related losses is making its way into the public realm.

• April 2007: Virginia Tech - Families win USD11m settlement
• December 2012: Aurora - Cinemark spends USD700,000 in legal fees
• December 2015: San Bernadino - Families seeking USD58m for wrongful death and property damage claims
• June 2016: Pulse Nightclub, Florida - USD29.5m to be paid out from victims’ fund

Active shooter and assailant attacks can occur in all types of businesses and organisations; however those exposed to the general public are most at risk. While most cannot predict if and when they might be affected by an attack, either directly or indirectly, steps can be taken to protect business and personnel if the worst was to happen.

The insurance market is responding positively

Following the realisation that most general policies purchased by organisations anywhere in the world – including terrorism, workers compensation, general liability insurance and business interruption - were failing to provide effective coverage in the event of an active shooter/assailant incident, the insurance market began to develop and offer a plethora of insurance products to respond.

We are confident as a broker that the movements within the market to refine and broaden coverage offerings have been sufficient to now meet almost all clients’ needs and that the market will continue to evolve positively as an increasing number of policies are refined and purchased.

Determining and addressing exposure concerns and responses

Whilst the concepts of duty of care and business contingency are at the forefront of organisations’ minds, many are still at the stage of determining what exposures they should be prioritising and mitigating, and what part insurance might play. The latter being partly a factor of insufficient clarity around which risk transfer options could meet their needs.

As intermediaries, our role is to assist clients on fully understanding the policies available, including variances, how coverage relates to the policies they may already have in place and how to check there are no gaps in coverage.

Policies remain different in scope and focus but it is now possible to sweep up exposures and reflect the uncertain nature of an active shooter/assailant attack, including lack of physical damage occurring to trigger a policy and how an attack can quickly develop into a hostage scenario.

Enhanced policies are now also supported by risk mitigation programmes, including crisis support and response provider coordination, bespoke training programmes and access to security assessment providers.

We encourage you to contact David Eliot or William Miller if you would like to find out more about active shooter coverage.

Miller and SCR recently presented on active shooter at the RIMS Atlanta Chapter event. To find out more, please click here.


* http://www.gunviolencearchive.org/