Business liability insurance has been in existence for many decades and is designed to protect companies from the financial losses associated with property damage and injuries occurring in the workplace or on the premises of a given business. In recent years, a specialized form of business liability insurance has risen in prominence. This insurance is called active shooter insurance, and it is a response to the uptick in gun violence incidents that have resulted in the losses of hundreds of lives over the past decade. Thousands of injury victims are also the result of active shooting incidents, which can occur at any time and virtually any place, including schools, theaters, workplace environments, and retail establishments.

As active shooter protection insurance has received attention from business owners and organizational leaders, this specialized insurance has led to many questions. Professional Governmental Underwriters, Inc. (PGU) is the industry’s premier provider of custom-tailored active shooter insurance policies, and has prepared this guide to explain how these insurance programs work, why companies are moving to purchase this valuable insurance, and what some of the common terms in these policies mean.

How is Active Shooter Protection Insurance Different from General Liability Insurance?

General liability, or GL, insurance, is a common insurance type used by businesses to protect their financial assets. These policies are designed to protect an insured business from many claims of bodily injury and property damage. GL policies typically have many exclusions, particularly for business interruption, acts of terrorism, employee as shooter, and limitations on property damage claims. Active shooter protection insurance, on the other hand, is similar in respect to protecting against claims of injury and property damage, but it includes far more. Most active shooter policies also have provisions to include event-triggered crisis management services, threat assessments and security vulnerability programs, coverage for victim counseling and recovery services, and even funeral expenses for victims of an active shooting incident.

Why Has Active Shooter Insurance Increased in Demand?

The insurance industry responds to societal and business developments, and active shooter protection insurance is the industry’s response to the sharp rise in such gun violence events since the year 2000. In the period between 2000 and 2017, nearly 800 people lost their lives to active shooter incidents in the United States alone. In 2016, 385 individual active shooter events occurred, outpacing previous years on record. 2017 and 2018 have both seen devastating incidents, including school and workplace shootings. Many experts agree that gun violence has become a social norm and is expected to cause loss of life and financial effects for the foreseeable future.

What Does Active Shooter Insurance Cover?

Most active shooter insurance policies contain a number of areas that serve to protect against claims arising from gun violence incidents. These policies are considered primary insurance; in other words, the policy will act as a primary insurance to any other insurance carried by the named insured. Most policies contain primary third-party liability and business interruption insurance with limits up to $20 million or more per active shooter event and $50 million or more in the policy aggregate. Some of the best insurance solutions, such as the policies offered by PGU, also contain built-in Crisis Management Services as standard. Crisis management services are called into play if an active shooter event were to occur, offering support and advice to the named insured organization or company when it is needed most. These insurance policies also include comprehensive and proactive risk management services such as Active Shooter and Security Vulnerability Assessments and Active Shooter Safety Action Plan Seminars, both of which help insured organizations prepare and plan for the unlikely event of a gun violence incident.

For terminology, it is important to select policies that have claim expense coverage rather than liability expense coverage. These policies cover expenses for a wide variety of claims, including damages, monetary awards, and court settlements. Some policies will define gun violence or terrorism differently than others as well. It is critical that organizations work closely with an insurance provider to reach the appropriate policy for the specific needs and risks of each named insured. By doing so, business operations and organizations can more adequately protect their personnel and their financial assets in the event of an active shooting event.

About PGUI

Professional Governmental Underwriters, Inc. is a full-service risk management company dedicated to assisting public, educational and non-profit entities in the management of their professional liability exposures. We are dedicated to providing state-of-the-art professional underwriting management and loss control advisory services on behalf of our designated carriers. For more information, call us toll-free at (800) 586-6502, or call one of our professionals directly:

Ned Daly                     804.272.8060

Grey Lester                 804-272-5964

Dana Fawver              804.272.7405

Will Shumadine        804.272.9210

Peyton Judy               804.272.4317