The deeply troubling trend of increasing gun-related violence is difficult to ignore. The wide range of places where these incidents occur – from schools and churches to night clubs and workplaces – suggest that they can happen anywhere.
Unsurprisingly, this trend has many business owners nervous. It’s not uncommon for the families of victims to sue business or property owners for damages caused by an active shooter incident, especially in high profile cases. Many insurance companies have started offering active shooter insurance, also called active assailant coverage. This type of insurance provides financial relief for all expenses related to an active shooter incident.
So, as a landlord, should you have active shooter insurance for your multifamily properties? Here’s a look at what most policies include and some of the factors you should consider.
What is an Active Shooter?
The FBI defines the term “active shooter” as “an individual actively engaged in killing or attempting to kill people in a populated area.” This term is often confused with the term “mass shooter.” An active shooter is referred to as a mass shooter once four or more people have been injured or killed.
While “active shooters” are clearly defined, the way active shooting incidents are documented varies. This makes it difficult to know the total number of incidents that occur. Some organizations stick closely to the FBI’s definition, while others don’t include incidents that are gang-related or related to other crimes.
What Does Active Shooter Insurance Include?
Depending on your coverage, the standard liability insurance may not cover an active shooter crisis. Active shooter insurance is a standalone policy that supplements your current general liability coverage. Depending on the policy, it could include financial aid for:
· Crisis management services
· Emergency response teams
· Costs for business interruptions
· Public relations
· Legal liability expenses (defense costs, indemnity, judgments, or settlements)
· Physical damages to the property
· Future preventive measures (security, or aid in identifying troubled individuals in the future)
· Job retraining or relocation
· Victim expenses (medical, dental, victim counseling, psychiatric care, and death, funeral, and burial expenses)
· Workers compensation for rehabilitation, vision loss, hearing loss, or permanent disablement
Active Shooter Insurance Considerations
If you’re thinking about purchasing coverage for your property, it’s essential to pay attention to the policy’s terrorism exclusions. Some policies define terrorism differently than an active shooter. This may prohibit you from receiving aid from an incident that doesn’t meet the policy’s precise definition.
Here are a few things you should consider when purchasing active shooter insurance:
Employee coverage and casualty thresholds
You should avoid any policies that only include residents and their guests – or only includes coverage for your employees. Some policies also have casualty thresholds, where coverage only applies if a certain number of people have been injured or killed. If you’re going to purchase a policy, it’s worth it to make sure that any or all victims are covered.
Weapons and vehicle restrictions
Some active shooter policies define their coverage as an attack made with only a firearm or bladed weapon. These policies won’t cover incidents where explosives or improvised weapons were used. They also may not cover attacks that were carried out with a vehicle.
Crisis management
If you have an active shooter incident, it’s important to have resources available to help everyone who was involved. Make sure your policy has coverage that includes aid for crisis management services like counseling, public relations, or consulting.
Should You Have Active Shooter Insurance for Your Property?
The aftermath of an active shooting event is taxing, emotionally and financially. There are many costs that may not be initially apparent. With that in mind, should you purchase an active shooter policy for your multifamily property? Unfortunately, there’s no straightforward answer.
Workplace violence isn’t a new development. According to the Bureau of Labor Statistics Census of Fatal Occupational Injuries (CFOI), workplace violence and injuries are the 3rd leading cause of occupational injuries in the United States. While not all active shooter incidents result in death or injury, it’s clear that these events are on the rise. According to the FBI, the average number of active shooting incidents per year jumped from 6.4% between 2000 and 2006 to 16.4% between 2007 to 2013. While the chance of an active shooter incident happening at your property is low, having coverage could provide some needed relief if such an event occurs – particularly in the way of victim counseling.
However, active shooter events are relatively rare and occur spontaneously. The incidents tend to occur at a wide range of locations, from schools and churches to restaurants and medical offices. Active shooter incidents can occur anywhere, at any time, making the need for active shooter insurance unclear for many businesses. There’s a good chance that if you purchase an active shooter policy, you may not need it.
As with all supplemental insurance, you’ll only need the policy should an incident occur – and there’s no way to know if one will. The costs of an active shooter policy may be enough to dissuade many landlords from purchasing one. Still, if an incident occurs, it could end up saving a substantial amount of money and hassle. Ultimately, you’ll need to weigh the benefits with the costs to decide whether it’s worth it to you to purchase a policy for your property.
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