The risk landscape for violence-related incidents is shifting. While terrorism and political violence (PV) have long been established lines within the specialty insurance market, a broader and more complex category of risk is now coming to the fore: malicious assailant events.
Particularly in the United States, demand for malicious assailant cover has grown rapidly across sectors such as healthcare, education, retail and hospitality. These policies respond to a broader spectrum of incidents than traditional terrorism or PV coverage, reflecting the reality that many modern events are not politically motivated yet still result in significant operational, financial and human impacts.
The claims arising from these events are often nuanced, sensitive and complex.
A broader trigger, a more complex claim
Malicious assailant events can include workplace violence, domestic disputes escalating into the workplace, active shooter incidents or credible threats that disrupt operations.
The implications for insurance claims are significant. These events frequently span multiple lines of coverage, including property damage, business interruption, general liability and workers' compensation. In many cases, the initial focus is on physical damage or operational disruption.
Business interruption is often the immediate driver of insured losses. Sites may be closed for extended periods, access may be restricted or customer demand may be materially reduced due to reputational impact. In some cases, the location itself becomes associated with the incident, requiring redesign, relocation or even demolition.
Yet more significant exposures often emerge later and lie in liability.
The long tail of liability
Liability claims in malicious assailant events can be both substantial and complex. They typically center on questions of foreseeability and duty of care: what was known about the risk, what measures were in place and how the organization responded to prior warnings or incidents.
This requires a detailed understanding of the insured's operating environment. Were there previous threats? Were security systems functional and appropriate? How were incidents escalated and managed? These questions can become central in determining liability exposure.
The importance of early, specialist response
Given this complexity, the quality and timing of the initial response are critical. Establishing a clear factual record early, while evidence is available and before narratives become entrenched, can materially influence the trajectory of a claim.
These investigations require a blend of capabilities. Security expertise is essential to understand the incident itself: access controls, threat indicators and response protocols. Equally, claims expertise is needed to translate these findings into insurance-relevant analysis, particularly where multiple policies may respond.
Sensitivity is also paramount. These events often involve significant human impact, including injury, trauma and loss of life. The way in which claims are handled, both operationally and in communication, can have lasting consequences for policyholders and their stakeholders.
A changing market dynamic
The growth of malicious assailant cover reflects a broader recalibration of how the market understands violence-related risk. Traditional categories are proving insufficient to capture the full range of modern exposures, and new products are emerging to bridge that gap.
For insurers, brokers and policyholders, it is important to understand the practical realities of how these claims unfold. This includes recognizing where the largest exposures are likely to arise and ensuring access to the right expertise when incidents occur.
As the market continues to evolve, one point is clear: these are not conventional claims. They require a coordinated, informed and measured response, grounded in both technical expertise and an appreciation of the broader context in which they arise.
Kevin Moran is executive general adjuster and U.S. team lead for malicious assailant, war, terrorism & political violence at McLarens.
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