Active Assailant Coverage

Jeff Cavignac, CPCU, RPLU, ARM
The threat of an armed attack has escalated dramatically in the past five years and the economic costs arising out of these events can be significant.  Several insurance companies (AIG and XL Catlin) have developed specific insurance products to cover this exposure.

One of the companies currently offering coverage defines “assault” as a physical attack which could result in death or dismemberment.  The attack must involve the use or display of a lethal weapon and the attack must appear in the regional print or televised media within 48 hours of the incident.  Coverages, terms and conditions will vary by insurance company, but typically the following would be covered:

  • Property Damage including Business Interruption
  • Non-Physical Damage Business Interruption
  • Extra Expenses – these may include:
    • Public Relations Costs
    • Relocation Expenses
    • Counseling
    • Medical Expenses
    • Job Retraining
    • Additional Security Measures

Both policies we reviewed also included some form of crisis response service.  This might include an introductory workshop or a discussion regarding security risks a specific business might face.

The cost of this coverage will vary by the type of business seeking the coverage.  Minimum premiums start at $2,500.

It is sad commentary that the insurance industry has had to develop a product to cover a business for damages arising out of an active assailant, but it has.  If you have questions on this coverage or would like to obtain a quote, let us know.