Active Shooter Incident Insurance

By reviewing most of the available Active Shooter type policy forms on the market to date, I’d like to highlight some of my Key Findings and Comparisons that are note worthy to our agents and brokers. Please read all policy forms before proposing cover to your insured. I feel some of the policy language on the market could present possible E&O issues if not explained/understood correctly.

 

Liability Coverage Form: This is a pretty basic item but I feel we would want to make sure the Policy would cover claim expenses, including: Damages, Monetary Awards, and Settlements. Buyers Beware…There are policies on the market that include Liability Expenses only.

 

Coverage Triggers — Definition of Event: Most of the Event definitions are similar; Act of potentially deadly force involving the use of a Weapon on the Premises”; or Threat of deadly force involving the display of a Weapon on the Premises.

 

Buyers Beware…Some policies require specific number of casualties or persons affected of three or more persons or under 50.

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Terrorism Exclusions: I would prefer that the policy does not contain any Terrorism exclusions. Buyers Beware…Policies will define the Terrorism differently. Some use wording similar to: “threat of any person, committed for political, religious, ideological or similar purposes including the intention to put the public, or any section of the public, in fear.” While others define an act of Terrorism as an event where fifty or more persons sustain death or serious physical injury. Again, I would suggest the policy does not exclude terrorism regardless of the definition.

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Definition of Firearm or Deadly Weapon: With the recent Mall stabbings, France truck attacks and NJ /NYC pressure cooker bombs we need to understand what the policy defines as a Deadly Weapon. Some policies are broad in definition such as, “an instrument or explosive device which is specifically intended to be used for and used to injure, kill or incapacitate a person.” And then there are some policies that are very specific: “Deadly weapon means any firearm (whether loaded or unloaded), explosive device, knife, syringe, medical instrument, liquid acid and or any other device or instrument which has been designed, made and constructed to be a weapon capable of producing death or bodily injury by the manner in which it is used or intended to be used”.

 

Buyers Beware…Just make sure your insured understands what type of weapon is covered.

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Post Event — Pre-Contracted Crisis Management Services: Many of these policies offer some type of Event Crisis Management services that provide coverage for specific post Active Shooter event services of a Crisis Coach or Public Relations consultant. Post event support and PR management is critical to manage the situation and protect your insured’s reputation and mitigate any future claims.

 

Buyers Beware…Look for policy wording that states Required Prior Approval or Review at the time of an event. I feel this has the potential for a delay in response.

 

I would strongly encourage for the program to include pre-contracted Crisis Management Services that are clearly defined and spelled out in the policy.

 

These services should be available directly to the insured, 24/7/365 immediately after an Active Shooter Event with a dedicated crisis hotline. If properly worded, the insured will have guaranteed access to the Crisis Management Response Team in the event of an Active Shooter Event. These Crisis Management Services fall into three main categories:

 

• Investigation: The event responder will conduct an independent investigation into the Active Shooter Event for sole use by the insured in determining the facts of the Active Shooter Event, informing crisis response plans and identifying any potential third party liability exposures as soon as possible.

 

• Crisis Management Support: The event responder will provide advice and support to the Named Insured on the management of the situation and the applicable crisis communication strategies post the Active Shooter Event.

 

• Temporary Security Measures: The event responder will (if required) arrange for armed or unarmed agents to provide temporary security enhancements as required by the response strategies.