Active Shooter Coverage: What is it and Who Should Consider

Generic placeholder image
Drew Taylor

Active Shooter Coverage (also known as Active Assailant Coverage) 

Per the OSH Act of 1970, Employers have the duty of providing a safe workplace to its employees. Unfortunately, Active Shooter events continue to rise and providing a safe workplace has become more difficult to guarantee. Active Shooter Insurance can help protect entities in the event of the aforementioned scenario. It’s intended to close gaps in the General Liability and Property policies which often exclude these events.  

The FBI has defined an Active Shooter as “an individual actively engaged in killing or attempting to kill people in a populated area”.  According to A.M. Best, citing FBI data, “From 2000 to 2006, shooting incidents averaged 6.7 a year, jumping to 16.4 a year from 2007 to 2013, and then averaging 22 a year between 2014 and 2017.”  This staggering and unfortunate growth of active shooter events has led to a greater demand for this insurance protection. 

Standard Coverage Grants

3rd Party Coverages: 

Legal LiabilityIn the event of an active shooter, insureds are required to pay for certain damages and expenses.  Entities are required to provide a safe place for any guests / customers. As such, they can become legally liable to pay for damages caused to 3rd party individuals in the event of an active shooter.  Just recently, MGM International settled for $800 Million with thousands of families following the 2017 shooting at Mandalay Bay.  

Medical Expenses / Funeral Expenses / Death Benefit Coverage is intended to respond to allow the insured to assist families affected by the event.  

1st Party Coverages: 

Physical Damage – If there is a physical loss and property is damaged in the active shooter event, this coverage will respond to help repair the owned property.  This repair may include physical security upgrades at the building.

According to Risk & Insurance, in 2007, following the shooting at Virginia Tech, the school decided to tear out the interior of the buildings affected and re-design to respond better in instances of an active shooter.

Similarly, in 2012, following the tragedy at Sandy Hook, the school district decided to completely tear down the existing building and start from scratch as the previous structure was linked to so much emotional duress. Roughly $50 million was spent to design and built a school better equipped to handle possible events. 

Business Interruption / Loss of Attraction – Insureds can be indemnified for the loss of income following an active shooter event resulting from physical damage to their own property or if access to their property is denied (blocked). 

Crisis Management – coverage will respond to indemnify the entity if specialist crisis response or consultants were used as it relates to the active shooter event. 

Who should consider it

While Churches and Schools appear to be the main target of these attacks, given the rate that these terrible events occur, we recommend that anyone with an office location carry an Active Shooter insurance policy.  Unfortunately, this product tends to be a reactionary purchase after something horrible has shocked either themselves or other companies closely related to them. 

Paul Marshall, the Active Shooter/Workplace Violence Insurance Program Director at McGowan Program Administrators, said in an interview with Insurance Business that following a church shooting in Texas that they [McGowan] saw a major uptick in other churches in Texas exploring Active Shooter coverage.  

At the very least, you should implement an Active Shooter response plan to protect your employees as this is the very standard set forth by OSHA’s General Duty Clause. There are a number of resources available through the Homeland Security site to begin to formulate an Active Shooter response plan. 


Want to know more about protecting your company with Active Shooter coverage? Talk to us. You can contact us at ​info@foundershield.com​ or create an account ​here​ to get started.

Related Articles

business_risks
February 24 • Risk Management Tips

How to Identify and Manage Your Particular Business Risks

No matter the size of your company, knowing your particular business risks is crucial. Some vulnerabilities are too big to ignore, potentially causing your company significant loss or setbacks. As we frequently advise, purchasing a general liability (GL) policy works tremendously as the foundation to a robust risk management plan. But what about the other

commercial-insurance-costs
January 12 • Risk Management Tips

7 Bad Practices That Hike Your Commercial Insurance Costs

It might seem like a chore to keep your commercial insurance costs low. Here are some pitfalls to avoid that will help maintain your budget-friendly goal.

December 30 • Risk Management Tips

IPO Insights: 7 Considerations for Late-Stage Companies

Preparing for an IPO can seem like a daunting task for late-stage companies — but it doesn’t have to be. Considering these tips will make the process more manageable.

insurable risk
December 8 • Risk Management Tips

What Is an Insurable Risk?

Identifying an insurable risk from an uninsurable risk is tricky. Here’s a closer look at how insurers categorize specific exposures.

tech_companys_mistakes
December 1 • Risk Management Tips

6 Big Tech Company’s Mistakes We Won’t Forget Soon

Errors, faux pas, mishaps; it’s only natural to expect them in our everyday lives. In the business world, however, these incidences make a much larger splash. The ripple effect is often devastating — and unforgettable. This post examines six mistakes that famous tech companies made and the lessons we can learn from their blunders. 1.

captive_insurance
November 24 • Risk Management Tips

When Does Captive Insurance Make Sense?

Captive insurance is popular with technology, rideshare, and on-demand companies. Here’s how it works best.