Tragedy struck New Orleans on New Year’s Day when a driver intentionally rammed a pickup truck through crowds of revelers on Bourbon Street, leaving multiple fatalities and many more injured. As the city reckons with the emotional and logistical fallout, new questions arise about liability, public safety, and the vital role of insurance. In the aftermath, insurance insiders examine how ongoing construction on protective bollards, the nature of terror-related acts, and shifting risk assessments can directly influence insurance coverage for individuals, businesses, and government entities.
Below are several ways this tragic event could raise or highlight insurance concerns:
Municipal and Contractor Liability
- City responsibility: If the replacement of the bollards was delayed or if the construction process allowed a gap in security, victims or their families might consider whether the municipality was negligent in maintaining safe conditions.
- Contractor coverage: If a private contractor was involved in removing or installing bollards, questions may arise as to whether any negligence on their part contributed to the vulnerability. Their general liability insurance might come into play if a lawsuit alleges errors in installation or failure to meet safety standards.
Premises Liability for Local Businesses
- Injury on/near business premises: Even though the street is public property, lawsuits sometimes name local property or business owners if an argument is made that their security measures (or lack thereof) contributed to the harm. Business owners typically carry liability coverage that could respond if such claims arise.
- Impact on insurance premiums: If the area is seen as a higher-risk zone (because of public infrastructure vulnerabilities or repeated incidents), insurers may raise premiums for businesses or impose stricter policy terms.
Auto Insurance and Criminal Acts
- Personal auto coverage: Under most personal automobile policies, intentional or criminal acts like using a vehicle as a weapon are excluded from liability coverage. This means victims might face an uphill battle in recovering damages from the driver’s auto policy (or the driver might have no coverage at all, depending on policy specifics).
- UM/UIM coverage: If victims have uninsured/underinsured motorist (UM/UIM) coverage on their personal auto policies, they may be able to collect from their own insurance, though exclusions could apply if this is deemed terrorism or an intentional act.
Terrorism Coverage
- Business policies: Many commercial insurance policies include an optional terrorism endorsement. If this event is officially declared a terrorist act, organizations with such coverage might be able to file claims for losses (e.g., business interruption or property damage).
- Government backstop: The federal Terrorism Risk Insurance Program (TRIA) may be triggered for large-scale events deemed acts of terrorism, allowing insurers and policyholders to recover some losses through a government “backstop.”
Event and Public Gathering Coverage
- Special event insurance: Large city gatherings often involve specialized event insurance covering liabilities. Whether or not the city or event organizers had a policy that addressed a terror or security event is a question, and any existing coverage could help address claims from victims.
- Enhanced future requirements: This incident may prompt stricter guidelines for organizations hosting public events to carry certain limits of coverage or meet new safety requirements (like fully functioning bollards or barriers).
Workers’ Compensation
- Injured employees: If any local business employees, event staff, or public safety officers were hurt in the attack, workers’ compensation insurance might step in to cover medical expenses and lost wages, assuming their injuries occurred “in the course of employment.”
Long-Term Risk Management Implications
- Increased scrutiny of safety infrastructure: As local governments and insurers evaluate public spaces, incomplete infrastructure projects or malfunctioning security equipment can become significant underwriting factors.
- Higher security standards: Future contracts for bollard installation may require more thorough risk assessments, bonding requirements for contractors, and strict completion timelines—potentially leading to new or higher-cost insurance requirements for municipal construction projects.
From the insurance perspective, these concerns play into who may be held liable, whether coverage applies to intentional or terror-related acts, and how risk management measures—like working bollards—affect underwriting and premiums in the future. Ultimately, if the construction process or city oversight is found to have contributed to a lapse in security, legal and insurance claims could follow, underscoring the importance of robust municipal risk mitigation measures.