Active shooters and War/Terrorism coverage is something that, unfortunately, has become a necessary conversation. Although these instances are extremely rare, it is important to make sure that there’s coverage when our client’s need it the most.
We are seeing a trend in businesses securing not only tangible properties but also intangible items like cyber security and civil unrest. We have outlined some coverages that you might consider discussing with your clients to protect their employees and business in the most extreme of events:
Sabotage, Terrorism, Strikes, Riots and Civil Commotion
- Property damage, business interruption, including cyber terror attacks
- Third party property damage and bodily injury for sabotage and terrorism
- Event cancellation
- Long term construction projects
- Typical coverage equaling up to $75 million per single risk
Insurrection, Rebellion, Revolution, Mutiny, Coup D’état, War and Civil War
- Property damage and business interruption
- Event cancellation
- Long term construction projects
- Typical coverage equaling up to $20 million per single risk
Active Assailant
- First party property damage and business interruption
- Third party liability in respect of bodily injury and property damage
- Crisis management service
- Medical and dental expenses and counseling costs
- Job retraining and recruitment costs
- Typical coverage equaling up $30 million
Threat
- Business interruption without property damage trigger
- Threat of terrorism confirmed by a civil or military authority
- Threat can be within a 500m radius of insured location
There are many different types of war and political risk, but to help picture what the coverages would apply to we have gathered some examples:
- Strikes: Multiple Walmart stores were damaged, vandalized and looted across several Mexican states in January 2017 in response to a 20 percent Government-enforced hike in gasoline pricing. Walmart’s insured losses from these riots were $70 million.
- Rebellion/Revolution: Inspired by the Tunisian uprising, civilians took to the streets in Egypt’s major cities in January 2011 to demand the overthrow of President Mubarak. Violent clashes between security forces and protesters resulted in severe property damage and business interruption in multiple locations. After 18 days of protest, Mubarak resigned as president, handing over power to the Supreme Council of the Armed Forces.
- In July 2016, the Turkish military launched a coordinated operation in several major cities to topple the government. Soldiers and tanks took to the streets, fighter jets dropped bombs on their own parliament and a number of explosions rang out in Ankara and Istanbul.
- Active Assailant: In August 2019, a gunman opened fire at a Walmart in El Paso, Texas, United States of America killing 22 people. The location did not reopen until November 14.
- Threat: A football match between Germany and Holland due to take place in Hanover, Germany in November 2015 was called off after police received “concrete information” of a planned terrorist attack in the stadium.
Although these incidences are rare, the risk is still there and we should begin discussing and analyzing clients’ risk management plans in order to appropriately protect them and their businesses. We can start by obtaining their current exposure to ensure that wherever they are doing business they don’t run the risk of business interruptions impeding on their financial and social strategies.