Does your business really need insurance for mass shootings?
As a business owner, you want to be prepared for anything from floods to fires, but what about mass shootings? Today, the demand for mass shooting insurance has increased, although most clients are schools or public entities. However, more private businesses should consider mass shooting insurance because, according to FBI reports, a majority of shootings occur in business settings.
The stats have shown that not being prepared for mass shootings can be costly. Consider the 2017 Las Vegas shooting that entangled MGM Resorts International in endless litigation. As MGM’s and other similar incidents have shown, the unpredictability and risk of an active shooter should not be ignored. You don’t want to jeopardize the future of your business, especially of it’s just starting up, by not investing in an mass shooting insurance policy specific for businesses.
Like any other type of insurance
Just like any other form of insurance, mass shooting insurance policies are formulated by comparing the cost of the product against the likelihood that you’ll need it. However, determining that cost can be tricky when trying to calculate the trauma and bodily harm mass shootings wreak on businesses with respect to a dollar amount. What is your business liability in case of a mass shooting?
Currently, mass shooting insurance is a small, but profitable market considering the rarity of mass shooting which makes payouts rather unlikely. Payouts for shootings are not as probable as are those for floods or fire damage.
Also, since mass shooting insurance is based on an exaggerated perception of risk, the annual premium will vary, depending upon the coverage. Insurance companies do have minimum risk when offering active shooter policies which helps premiums to stay at a low cost for business owners.
As for the total coverage that can be purchased, most limits average about $20 million, although some limits are as low as $1 million or as high as $35 million. For this reason, you must weigh the value of your business against the risk of loss or damage incurred by a shooting. Whatever coverage limits you decide on, the peace of mind knowing you have a plan in place will be priceless.
Protecting your business
So what’s the next step? You could go rummaging through thousands of plans, doing the math on your own, but that won’t guarantee that the plan you get suits your business or provides adequate coverage when compared to the amount of money you’ve invested in it. Instead, your best option is finding a broker for business insurance.
Daniel Fraisse is an independent insurance broker whose priority is understanding the unique needs of your business and translating them into an insurance plan. In the case of mass shooting insurance, Fraisse compares the size of your company and number of employees alongside other important factors such as state gun laws.
From all this information, an insurance plan can be developed that is cost-effective, practical, and preventative so that your business will never experience long-lasting financial damage from an active shooter incident.