First Look – Fall 2021: Insurance Newsletter | Steptoe & Johnson PLLC

MASS SHOOTING: SEVERAL APPLICANTS CONSIDERATIONS –

In 2020, despite almost nationwide lockdowns due to the COVID-19 pandemic, the United States held out 611 mass shootings. This represents an increase from 336 in 2018 to 417 in 2019. Such events often result in civil liability claims from multiple applicants demanding substantial sums. In the MGM shooting in Las Vegas, 58 people were killed and another 850 injured. The claims were settled with $ 800 million, with insurers contributing $ 751 million. The increased exposure has led to insurance disputes and the sale of alternative insurance options for “deadly weapons” or “active shooters”, often as standalone policies. Assuming that insurance coverage is in place, be it under a CGL policy or a newer Active Shooter insurance, the number of claimants and the associated high risk of mass shootings pose unique challenges for the insurance industry Determine the amount of available limits and manage billing with multiple different beneficiaries while avoiding non-contractual liability.

The determination of the available limits is often focused on whether the events covered are considered one event or multiple events under the policy. As part of an event-based policy, limits are often available per event within an overall limit for multiple events. In such circumstances, where each victim or shot fired is viewed as a single event, plaintiffs would stack the events until the total limit is reached – thereby creating a ceiling on potential exposure. However, if the current policy does not impose an overall limit, the number of events is not artificially limited and the potential exposure remains unchecked. However, if the intake event is viewed as a single event, the limit per event significantly reduces the exposure of the wearer …

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