Schools can use captive insurance solutions against property damages caused by shooting attacks, according to a new report by AM Best.
The report, entitled ‘Insurers create new types of coverage for mass shooting attacks’, identifies an “escalating trend” of active shootings in the US between 2000 and 2017.
Property damages caused in shooting attacks are not covered by traditional terrorism policies because they are not ideologically, politically or religiously motivated; instead, the majority tend to be triggered by personal or pyschological reasons.
AM Best highlights the current gap in general liability policies that does not meet the existing market demand. In response to this, some insurers, such as Liberty Mutual, EMC Insurance and Church Mutual, are now offering coverage for this new category of risk.
This new type of coverage refers to “active assailant policies”, which includes a pre-incident security vulnerability assessment, brand rehabilitation and PTSD-related support services.
AM Best also notes that although “no amount of preparation can completely prepare an entity for an active shooter incident”, these new insurance provisions will promote education within businesses and wider communities on how to protect lives and property.
