In response to this emerging risk, program administrator Irwin Siegel Agency (ISA) partnered with top-tier insurer Aspen to develop and launch a new Active Assailant insurance program designed for all types of companies across all industries with an enhanced version for Human & Social Service organizations, a sector in which ISA specializes. We spoke with the ISA folks managing the program: Brad Storey, Vice President of Risk Management; Dawn Martin, Vice President of Underwriting; and Nicole Delahanty, Underwriting.
In general, ISA’s Active Assailant program covers a deliberate malicious physical attack by an active assailant at a covered location who is present and armed with a weapon, and the subsequent action of authorities. Weapons include handheld instruments, small arms, explosives, corrosive substances and vehicles. The program also covers any specific threats to inflict bodily injury, or damage, destroy or contaminate property. There are three options available within the program from which to choose: Bronze, which includes physical damage and business interruption to the insured property as a result of an active assailant incident; Silver, which includes physical damage and liability coverage; and Gold, which also includes physical damage and liability coverage with higher sub-limits. Liability limits start as low as $250,000 and can go up to $10 million with the ability to provide greater limits for larger clients such as municipalities and educational institutions. Business interruption and extra expense insurance is available for up to 18 months. Response fees coverage is also available.
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“The spate of active assailant incidents over the last several years was the genesis behind creating our product,” explained Brad Storey, VP of Risk Management, “with the mass shooting at the Inland Regional Center (IRC) in San Bernardino, California back in December 2015 in which 14 people were killed and 22 others were seriously injured raising the awareness for the need for specific coverage enhancements and features for the Human & Social Service sector. While this wasn’t a targeted attack on the Regional Center itself, the Human Services industry did take notice evidenced by the frequency of requests for training on this subject.” The IRC is a government-funded non-profit organization that serves thousands of clients in the Inland Empire who have developmental disabilities. |
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“In addition, the incident at Parkland last year further amplified the concerns around mental health based on the media coverage of the assailant’s mental health history. It was apparent that this type of exposure transcends all different communities and, because our Human & Social Service clients play such a significant role in the community, we felt it necessary to address this segment with additional coverages in our Active Assailant program. Some of the most vulnerable populations are integrated into communities with the potential for an incident to take place away from the facility.”
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“The majority of policies available in the marketplace only cover incidents that happen at an insured’s premises,” noted Dawn Martin, VP of Underwriting. “As Brad mentioned, because our insureds are integrated into the community, we felt it was important that an off-site extension for Human & Social Services providers be included. It’s a key coverage enhancement that sets us apart. |
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“For example, let’s say a provider agency that works with persons who have intellectual and developmental disabilities takes the group on an outing to a bowling alley. An active shooting event occurs at the bowling alley injuring or killing some of the individuals in the group. Our policy will provide psychiatric services not only for the individuals who were present during the incident but also for immediate family members. It also provides an accidental death benefit should anyone from the group lose their life.”
Other coverage enhancements available for the Human & Social Service sector under ISA’s Active Assailant program include: a broad definition of insured persons comprised of employees, volunteers, individuals being serviced by the organization, and independent contractors that may be on site at the time of the event; an expanded definition of the vehicle that could be used to carry out the incident such as ATVs and snowmobiles; funeral expenses for insured persons; temporary staffing/recruitment costs to replace employees present during the event; service dogs and event cancellation extra expense coverage. “Let’s say an organization has a scheduled fundraising event that is cancelled because of an active shooting event nearby,” explained Dawn. “We offer up to $250,000 in coverage to pay for non-refundable expenses, such as venue and costs for special guest speakers, among others.”
In addition to specific enhancements available for Human & Social Service organizations, ISA brings several other key differentiators to the program for all industries. “Our program has a zero deductible for liability and property coverage,” said Dawn. “While other products require a certain number of individuals to be injured to trigger coverage, our program requires only one assailant and one injured person. Threat incidents are also covered; that is, even if the incident wasn’t carried out as intended, the program will provide some services triggered by the policy post-event.”
Not only does ISA offer superior coverage with its program, but it also includes risk management services to help mitigate incidents as well as key post-event services. “Ten percent of the policy premium is designed as a give back to apply to risk management services, with a buy-up option to purchase additional services,” explained Brad. “We have services that range from a two-hour online training course that walks through run/hide/fight and other strategies, a four-hour web consultation, a one-day onsite consultation and table top exercises, to live drills with a consultant simulating what it would be like to experience an active assailant event.”
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Post-event coverage is available under the Response Fees portion of the program. This includes forensic cleanup and critical incident response from market leading security consultants GardaWorld. Insureds also have access to a 24-hour hotline to call in the event of a threat or incident. “GardaWorld has the ability to be onsite in the lower 48 states usually within 24 hours,” said Brad. “Fireside Partners, a family engagement team, is also available to assist with family death notifications and the psychiatric service deployment post-event.” |
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While the program was recently announced, it has already garnered a great deal of buzz and interest from the retail agency community and their insureds. “We’re in the process of quoting business,” explains Nicole Delahanty, Underwriting, “and receiving great feedback from our agency partners. The program is competitively priced and offers a great deal of flexibility as coverages are available a la carte with our Bronze, Silver and Gold packages.” |
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For more information about ISA’s Active Assailant program, please contact Nicole at 800.622.8272 or via email at nicole.delahanty@siegelagency.com.