Demand Increases for ‘Active Shooter’ Policies

An increase in mass shootings in the United States has resulted in an increase in demand for active assailant insurance coverage, and insurers are responding to that demand, according to a new report.

Between 2000 and 2017, the nation experienced 250 active shootings, and the trend escalated during those years, acccording to FBI data cited by the A.M. Best Co. Inc. in a special report. 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.

“The costs following an active shooter attack can be substantial, and some insureds do not realize that their policies do not cover active shooting incidents,” the report said. “They may believe that this type of attack falls under terrorism coverage, but it does not.”

In addition, a property policy handles the physical damage of an altercation, but general liability sections do not clearly include or exclude active shooter incidents, which is “a concern for companies that are left footing a huge bill after this type of incident,” the report said.

Active assailant policies have been on the market since 2011, but demand has risen since 2016.

Schools, colleges or universities have been the number one setting for active shooter events, followed by retail/wholesale and shopping malls, according to the FBI data.

Source: Business Insurance