Rise in Mass Shootings Sends Hospitals and Schools to Seek Insurance Policies
With an increase in mass shootings over the year such as the Colorado shootings which left six dead at a birthday party and ten dead at a Colorado grocery store, a rising number of businesses and institutions have turned to insurance policies covering them in the event of a mass shooting.
The U.S. has seen a spike in mass shootings with 200 events occurring within the first 132 days of this year according to The Gun Violence Archive’s latest reports. The non-profit research group tracks instances of mass shootings throughout the nation and defines a mass shooting as an event involving four or more people who are killed, with the assailant not included.
Last year marked the deadliest year for mass shootings in a decade, and experts explain this recent surge as a direct result of the pandemic, rising stress levels, and increased rates of mental health issues and substance abuse.
Data compiled during the pandemic supports these claims. In a survey shared by the CDC, 40% of American adults have reported struggling with substance abuse or mental health during the lockdowns. 31% of individuals reported struggling with anxiety and depression while 26% reported dealing with trauma and stress related to the pandemic.
Hart Brown is the senior vice president for crisis management consultancy group R3 Continuum and estimates that the increase in violence has spiked about 15% - 20%. Brown also reiterates that the spike is an outcome of the pandemic. Brown explains, “The environment that was created by the pandemic, with the social distancing, the lockdown, and so forth, and the compounding stressors, is really what’s driving much of the violence that we’re seeing right now.”
According to experts, this perfect storm has led to an increase in insurance policies covering mass shooting events. One of the main sectors looking into insurance coverage is the healthcare industry, namely hospitals.
Tim Davies, the head of crisis management at a Lloyd’s of London global specialty insurer shared with Reuters that the increase in hospital policies is due to the nature of the environment. Davies explains, “Those are places where you could see people who are disgruntled that members of their family might have died and didn’t get a vaccine or weren’t treated properly.” Davis also explains that these concerns have also led to a price hike in insurance policies covering active shooting events. This increase he explains is felt all across industries, not just the healthcare field. He estimates the price hikes run anywhere from 25% - 50%.
Other industries seeking coverage include retail establishments, schools, universities, and places of worship. Schools especially have become synonymous with mass shooting locations over the past couple of years.
Tarique Nageer who works as a terrorism placement advisory leader at Marsh, shares that over the past two months, inquires about mass shooting policies have also jumped roughly 50%. Nageer also highlights that contrary to the mass shooting trends in the U.S., hospitals are more or less leading the way in seeking coverage as opposed to schools.
There isn't any clear data on whether or not certain sectors are seeking specific types of policies, but experts do say that the insurance coverage can range anywhere from $1 million to $75 million. Typically, these policies will cover things including any victim lawsuits being filed against the establishments, building repairs as are so often required, medical expenses, trauma counseling for those impacted, and any necessary legal fees.
