Let’s face it, the topic of an active threat is one that no one wants to think about. Senseless carnage is hard to swallow, but thinking about it happening to you or those around you is even more unsettling. Unfortunately, this is a very tragic reality that we are all forced to deal with due to the shocking regularity in which these events now occur. The hard truth is that many of us are unprepared to handle a situation like this, and our insurance policies may not provide the necessary coverage to handle the aftermath of such a catastrophic event.
An active threat can be defined as an individual or individuals who want to kill or injure large numbers of innocent people with anything from a bomb to, what people most commonly think of, a rifle or gun of some sort. Many entities are in the crosshairs for an active threat situation including but are not limited to, retailers, educational institutions, healthcare entities, religious organizations, entertainment venues, sporting events, lodging, and hospitality establishments. More broadly, public entities such as cities, counties, and townships can be targeted as well.
Unfortunately, some of these entities have taken few steps, if any, to protect individuals if an active shooter were on the premises. In other words, they are soft targets. To make matters even worse, if an active shooter event takes place this can result in litigation costs, property damage, business interruption loss, and expenses, etc. If this happens their current General Liability and Property insurance policies may not cover them. It’s no great leap to surmise victims and their families, as well as employees, will file lawsuits seeking relief for their injuries, emotional distress and loss of life. Without this important insurance protection, combined with possible gaps in your current insurance program you are self-insuring for these enormous and financially crippling expenses.
However, there is a solution to this potentially devastating dilemma in the form of “Active Threat Insurance.” This is a rapidly growing area of insurance due to the number of active threat events that have taken place recently not only in the U.S., but also worldwide. These policies are designed to plug the gaps that may exist in an entity’s General Liability or Property insurance policies. The policies are designed to provide coverage for such things as:
- 3rd party Liability Lawsuits
- Business Interruption & Extra Expense
- Crisis Management
- Property Damage
- Public Relations Expenses
- Counseling Services
- Burial Expenses
- Rehabilitation Expenses
These special policies are available on a separate and stand-alone basis from select carriers with available limits up to $25 million and annual premiums ranging from $500 up to six figures, depending upon the limits selected and type of entity being insured.
We at FBinsure have access to the carriers that can provide this type of protection. If you would like to discuss this exposure and review your current insurance for any gaps in your policies please contact Ed McGuire in our office. We will arrange a meeting with you to discuss your options and gather the necessary information needed to obtain quotes on your behalf.