Active Shooter & Workplace Violence Insurance
Mass shootings and workplace violence incidents have unfortunately become more common in the United States. These events not only result in tragic loss of life and injuries but also have significant financial and reputational consequences for the affected businesses. In response to this growing threat, primary General Liability carriers are attaching Firearms and Assault & Battery exclusions to their policies, which can lead to coverage gaps and delays in benefits. To address this issue, it is crucial to ensure that you have the appropriate protection fill the newly created coverage exclusion gaps. This blog post will discuss the importance of crisis management insurance, specifically focusing on our Active Shooter/Workplace Violence product, which offers critical coverage without the delays associated with determining legal responsibility.
The Devastating Cost of Delay
To understand the impact of coverage exclusions and delays in benefits, let’s consider the case of Hudson Specialty Insurance Co. v. Snappy Slappy, LLC. In this case, a bar patron shot and killed two other patrons, leading to a wrongful death action against the bar. Hudson Specialty Insurance Co. filed a declaratory judgment action seeking a declaration that it had no duty to defend or indemnify Snappy Slappy Bar due to a Firearms exclusion in its General Liability policy. After two years of litigation, the court found that the exclusion applied to the bar’s coverage. The time cost of determining legal responsibility and coverage applicability had devastating consequences for the victims and the insured:
- Critical victim coverages, such as death and disability benefits, were not paid.
- Trauma counseling was not offered.
- Business interruption and extra expense coverages for Snappy Slappy Bar were not paid.
- The hiring of additional staff, public relations counsel, crisis management consultant expenses, temporary security measures, and social media monitoring were not offered.
- The time cost of litigation resulted in delayed victim expenses and the eventual closing of Snappy Slappy Bar.
The Solution: Active Shooter/Workplace Violence Insurance
To avoid the devastating consequences of coverage exclusions and delays, you should consider our Active Shooter/Workplace Violence product. This insurance coverage fills key coverage gaps and quickly offers benefits to compensate victims, without the need to determine legal responsibility. Some of the critical coverages provided by this product include:
- Death and disability benefits for victim families.
- Trauma counseling for employees and witnesses.
- Business interruption benefits for the insured.
- Property reconstruction.
- Public relations counseling.
- Social media monitoring.
What Type of Businesses Need Active Shooter/Workplace Violence Insurance
The following individuals and businesses can benefit from Active Shooter & Workplace Violence Insurance:
- Businesses of all sizes: Workplace violence can occur in any organization, from small businesses to large corporations. Having the appropriate insurance coverage is essential for all types of businesses.
- Employers with high-risk occupations: Certain occupations are more prone to workplace violence, such as those that involve exchanging money with the public, working with volatile or unstable individuals, or working alone or in isolated areas. Examples of high-risk occupations include:
- Delivery drivers
- Healthcare professionals
- Public service workers
- Customer service agents
- Law enforcement personnel
- Educational institutions: Schools, colleges, and universities are particularly vulnerable to active shooter incidents. Having the appropriate insurance coverage can help these institutions manage the financial and reputational consequences of such events.
- Healthcare facilities: Hospitals, clinics, and other healthcare facilities often deal with volatile or unstable individuals, increasing the risk of workplace violence. Active Shooter & Workplace Violence Insurance can help these facilities protect their staff and patients while managing the aftermath of an incident.
- Retail and entertainment businesses: Businesses in the retail and entertainment industries, such as restaurants, bars, and movie theaters, may face the threat of workplace violence from disgruntled customers or individuals in the vicinity. Having the appropriate insurance coverage is crucial for these businesses.
- Religious organizations: Places of worship can be targets of violence, making Active Shooter & Workplace Violence Insurance essential for religious organizations.
- Hospitality and lodging businesses: Hotels, resorts, and other hospitality establishments may face the risk of workplace violence due to the nature of their operations and the potential for confrontations with guests or visitors.
- Government agencies: Public sector organizations, including local, state, and federal government agencies, should consider Active Shooter & Workplace Violence Insurance to protect their employees and the public they serve.
In conclusion, workplace violence and active shooter insurance coverage is crucial for businesses, organizations, and agencies that want to protect their clients, employees, and reputation in the event of a mass shooting or violent incident. The devastating cost of delays in providing necessary benefits and services to victims can have long-lasting effects on both any type of business. To ensure that you have the right coverage in place, reach out to an agent at Bancorp Insurance for a complimentary quote. Don’t wait until it’s too late to protect your business and those who rely on you.
Bancorp’s insurance agents are available to provide you with a free review and consultation. Contact Us – Bancorp Insurance Call 800-452-6826
Disclaimer: This content is provided for general information purposes and is not intended to be used in place of consultation with a certified tax professional or attorney.
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