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NEWS APRIL 12, 2021 ¦ 27

As data for gun ownership and gun deaths quarrels and are not the result of mental illness,
across the globe show, the United States clearly as many opponents of gun control relay. Indeed,
stands out. Paul Marshall, the managing director Michael Stone, a psychiatrist at Columbia Uni-
of the active shooter/workplace violence division versity, stated approximately 78% of the killers
team at McGowan Programs, one of the writers of he has in his database of mass shooters did not
this coverage, likened the coverage to a “go-fund- have a mental illness.
me account.” The policy will provide immediate
benefits without the wait to determine liability, What agents and brokers need to understand
according to Marshall. Agents should be cautious about straying into
coverages outside of their expertise. Active assailant
coverage is still a new and emerging market, and few
What’s not covered in standard policies?
A standard commercial property coverage poli- agents have deep expertise in this coverage.
cy will pay to restore the property to its state prior This coverage is highly specialized. Not all bro-
to the loss. However, if the insured wants to tight- kers have expertise in writing it. Since only a few
en security by reconfiguring entrances and exits, companies quote this coverage, ask for two or
the property policy would not cover such renova- three quotes and compare the forms closely, pay-
tion costs. ing special attention to the insuring agreement,
In the event of Sandy Hook Elementary, the the definitions and the exclusions.
school administrators rearranged the school not Today’s active assailants not only focus on
only to focus on increased security but also in schools, but they also focus on soft targets — loca-
response to those suffering from PTSD. The re- tions with a high number of people and low securi-
building of the Sandy Hook elementary school ty. Malls, theaters, and as we’ve recently seen, gro-
cost Connecticut taxpayers $50 million. A small- cery stores — no insured with public access should
to-medium business could not afford this and consider itself exempt from this type of event.
may have to give up a prime business location in
According to the Department of Homeland Se-
curity, active shooter situations evolve quickly, are
deference to its public and employees. highly unpredictable, and typically end within 10-
Liability policies respond if the active assailant to-15 minutes. The damages, both physical and
psychological, to people as well as property dam-
event meets the definition of an “occurrence” as age costs, however, will continue for years.
defined by the policy. If an active shooter or other
event causes multiple injuries or fatalities and a As active shooting risks continue to evolve and
court rules the event is one occurrence, the in- insurers respond, coverage will change, both nar-
sured’s liability policy limits will quickly erode. rowing and expanding to manage the tragic conse-
While it may seem beneficial for the court to de- quences of these violent mass events. Insurance pro-
termine that such an event constitutes more than fessionals must review the policy and definitions to
one occurrence, this, too, can harm an insured properly protect and indemnify the insured. ¦
who has a large self-insured retention or a high
deductible. Finally, liability policies generally
have assault and battery exclusions and terrorism Nancy Germond is an accomplished risk and claims
exclusions. It is possible the insurer could invoke manager with three decades of insurance experience
these exclusions and deny the damages. and has authored scores of risk-management-related

Often overlooked in active assailant cases is articles and white papers. Contact her at nancy@in-
that workers’ compensation coverage may be surancewriter.com. Chantal M. Roberts is an expert
denied if the administrative law judge finds the witness whose 20-year career includes handling a wide
event, while it occurred on the employer’s prop- variety of general liability, special investigations/fraud
erty and injured employees, is a purely personal investigation, homeowner, cargo, and property insur-
quarrel between spouses or intimate partners. ance claims. Contact her at cmroberts@cmrconsulting.
Many workplace fatalities arise from domestic net. Reprinted with permission from the authors.

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