Active Shooter Insurance

Active Shooter Insurance and Risk

Is Active Shooter Insurance becoming a risk management necessity? With mass shootings and workplace violence at a high, active shooter coverage is gaining attention and many smart business owners are taking notice. Some school administrators consider the likelihood of a shooting real enough that some districts are also buying active shooter insurance.

An active shooter incident is defined as any situation in which one or more people are actively using firearms in an attempt to kill individuals in populated locations. The statistics on these types of dangers are staggering. According to the Gun Violence Archive, as of June 13th, 2021 - there have been 257 mass shootings this year alone within which 1,143 people have been injured and 301 people have been killed. That is 257 mass shootings in 163 days (or 1.57 mass shootings every single day).¹ That is a horrifying reality.

This brings about an obvious question for schools and businesses. Should risk managers be considering active shooter insurance?

Active shooter insurance, also known as “active assailant insurance,” is a type of gap coverage used to supplement general liability insurance, covering unexpected expenses stemming from a shooting, like funeral costs, death benefits, and more.

Devastating events like active shooters can lead to major unexpected costs for employers, ranging from medical costs to trauma counseling. Active shooter insurance is one way some risk managers are choosing to offset these costs in the tragic event that a shooting does occur.

Because active shooter insurance can’t possibly be universal in application, there are a number of factors to consider when thinking about adding this type of policy. Decision-makers must pinpoint where the gaps in general liability insurance exist and review what property insurance covers in the case of an active shooter event.

Active shooter insurance can range significantly. For reference, when it comes to school systems, the Wall Street Journal reports that dependent on size, annual premiums for active shooter insurance can range from $1,800 to $20 million.

What Can Active Shooter Insurance Policies Cover?

Physical Damage Coverage – Insureds can get indemnity for physical loss or damage to insured property caused by an active shooter/workplace violence incident. This might include expenses incurred during structural security upgrades along with building closure, relocation, or teardown.
Legal Liability/Litigation – Insureds are legally obligated to pay for certain damages and claim expenses that arise from an active shooter/workplace violence incident. Organizations today are being held to a higher standard of accountability than in the past when it comes to the “duty of care” they have towards customers and employees and the public safety measures they’re obliged to uphold. Those who fall short of this “duty of care” are at risk of being sued. More on this topic ahead.
Crisis Management – Insurance carriers will indemnify the insured for specialist crisis response and consultant fees resulting solely and directly from an active shooter or threat event. This might include helping insureds deal with public relations, reassuring families and employees, and reinforcing the company branding.
Business Interruption Coverage – Insureds can get indemnity for physical loss, damage or destruction of insured property, or denials of access to an insured location resulting in business income losses.
Medical Expenses, Funeral Expenses, and Death Benefits – Policies enable insureds to help the victims of an active assailant or active shooter event by providing a supportive response to the trauma. This might also include psychiatric counseling for the victim traumatized by the event.
Loss of Attraction – An active shooter event can stigmatize a neighborhood, business district, or brand. Active shooter insurance can sometimes help with brand rehabilitation and can fill in some revenue gaps, even if the incident didn’t happen at the insured’s own business.

Be Careful with Exclusions

If shopping for active shooter insurance, there are some potential exposures as it relates to specific exclusions or gaps in some policies. Decision-makers should specifically look to identify coverage issues in the following areas:

Terrorism exclusions
Casualties threshold limits
Employee exclusions
Vehicle exclusions
Mental anguish exclusions

What Information Are Underwriters Using To Evaluate Risks?

Are there guards on-site? Are they armed?
Does the organization have an emergency response plan? If so, does the plan address an active shooter event?
Does the organization monitor social media and other factors to determine employee behavioral threats?
How many locations are there, and where are they geographically?
How much cash is on hand? Although money does not motivate most domestic terrorists, cash on hand is a component of risk.
What are its hours of operation?
What are the crime rates in that area?
What is the culture of the organization's human resources?
What is the distance of each location to the nearest police and fire departments? (i.e. how quickly can they respond)
What is the primary industry code of the organization?
What is the risk profile of that geographic area? Is it urban or more rural?
What physical or environmental barriers are in place to prevent attacks?

In addition to investing in an active shooter insurance policy, there are other ways that you can protect your business - and those inside of it - from a mass shooting situation. It is strongly recommended that business owners take a proactive stance and develop an active shooter response plan in the event that such an incident does occur.

What is Duty of Care?

In the US, several sources of law obligate an employer to a duty of care for the safety, health, and security of employees, in particular, the Occupational Safety and Health Administration Act of 1970. The duty of care requires protection against workplace violence hazards and employers can be held liable for negligence if employees receive “reasonably foreseeable” injuries. In recent years, the US public has been demanding more out of the duty of care principle, regardless of liability. Commercial organizations have reacted to this by asking for more victim coverages under their policies and by implementing risk mitigation policies, procedures, and technologies.

After a mass shooting, it isn’t unusual for victims and grieving family members to file lawsuits against a school or business alleging negligence, including for matters such as failing to provide adequate security or missing warning signs of a would-be-shooter.

How Can ASR Help?

ASR Alert Systems is a patented state-of-the-art critical incident response technology specializing in the field of alert notifications to Law Enforcement and First Responders in the event of an active shooter or other crisis. Our technology can be customized to any industry, building, or event. We deliver customer-specific technology unmatched by anyone. With the PUSH of A BUTTON, the life-saving critical information of your situation is sent DIRECTLY to police dispatch.

NOTE: When you call 911, you are generally reaching a call center who then has to call the local law enforcement department, who then has to communicate the situation to first responders.

The ASR system reaches dispatch and 911 simultaneously and also has the ability to text local officers on the ground - all at the same time, delivering all the information to everyone within seconds. We hold the patent on this technology.

Our critical incident response technology uses hard-mounted buttons, mobile pendants, and an optional mobile phone application to DIRECTLY communicate with first responders in the area to significantly decrease response times to an active threat or crisis situation.

The ASR Threat Alert System can and should be a part of emergency response plans for any and all organizations as it bridges the gaps between panic, communication, and life-saving response.

By installing the ASR Threat Alert System, a business is helping to mitigate the harms of an active shooter or other crisis events. Businesses may even be able to procure better active shooter insurance rates if a robust emergency response plan is in place. Speak with your carrier or agent for details.

If you are interested in an ASR Threat Alert System and would like to schedule a FREE LIVE VIRTUAL DEMONSTRATION, please contact us today.

You may also fill out the form below.

To learn more about ASR Alert Systems, CLICK HERE

¹ Mass shooting defined as four or more persons injured or killed, not including the shooter.