A comprehensive ‘assault and hostage crisis’ (AHC) insurance policy that covers a wide range of exposures and reflects the uncertain nature of an active shooter/assailant attack was recently developed and bound for the first time by SCR, part of the Miller Group. Here we share policy highlights and answer some of the commonly asked questions on active shooter cover.
Over the last 12 months we have continued to update you on the evolution of active shooter cover as the market responds to an increase in demand and the changing face of violent assault including terror attacks.
Following the realisation that most general policies purchased by organisations – including terrorism, workers compensation, general liability insurance and business interruption – were failing to provide effective coverage for active shooter/assailant incidents, the insurance market responded by introducing a range of tailored solutions, many of which differ in their scope and focus.
This can make policy selection difficult – an area where we as brokers can really add value. To help you better understand active shooter cover in order to best advise your clients, we have developed a series of frequently asked questions for those considering active shooter insurance.
Why AHC cover?
Available from SCR (Special Contingency Risks Ltd), an ‘assault and hostage crisis’ (AHC) policy sweeps up a number of exposures with coverage that reflects the uncertain nature of an active shooter/assailant attack. This includes the lack of physical damage occurring to trigger a policy and how an attack can quickly develop into a hostage scenario.
AHC’s tailored coverage encompasses financial protection, tangible support in the event of a threat or actual attack, and access to specialist preventative and incident management advice from leading experts in the field.
Policy highlights include:
- Cover for threat of an attack as well as actual attack
- Broad definitions of insured persons, weapon, assault and hostage scenario, including terrorist attacks
- Unlimited fees and expenses for crisis management services
- Inbuilt allowance for risk mitigation services/training (10% of premium).
- No specific number of casualties/persons affected required for liability policy element to respond
- Relevant additional expenses available for persons who witness an event
In addition, the policy has no sublimit for crisis management, no short rate cancellation – pro rata return premium in the event of cancellation and no deductible.
AHC cover was recently bound for the first time, alongside terrorism cover, for a large US-based property owner and manager with interests in the hospitality sector. The client was concerned by the ongoing threat of terrorism and violent assault, and was keen to benefit from the breadth of affirmative cover provided by AHC and the value-added security consultancy which SCR’s Alert 24 team provides.
We're here to help
Active shooter is an evolving risk environment with a growing demand for risk transfer solutions. It does however require on-going education as the market continues to evolve.
We are working closely with our clients to equip them with the knowledge and understanding they need to secure the most suitable cover for their clients.
Please get in touch if you would like to discuss any aspect of active shooter cover. We're here to help.
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