b'More recently, I had the opportunity to give a talk onpolicy will respond to an active shooter/armed assailant FOGHORN FOCUS thesubjectduringthe2023PVAAnnualConventionincident, Id say were a maybe at best. Even assuming it did at MariTrends. My biggest takeaway from that talk andrespond, it would likely only cover physical damage to the the conversations that followed over the next several daysvessel or machinery.is twofold. PROTECTION & INDEMNITY (P&I) First, people are clearly concerned about the possibility ofThis policy covers liability an owner may have to pas-an active shooter/armed assailant incident aboard a passen- sengersandvisitorsaboardthevessel,liabilitytothe ger vessel. Second, people are looking for clear-cut answers.crew,andvariousotherliabilitiessuchasthatarising Im not sure the answers are as straightforward as wed like,from injury caused by a collision. P&I exposure is usu-but that doesnt mean the discussion isnt worth having. ally addressed either by placing the vessel in one of the various P&I clubs or through the fixed-cost P&I market. During the Q&A in October, I was asked how insuranceThis article will focus on the fixed-cost market in which would respond in the case of an active shooter/armed assail- conventional insurance carriers charge a fixed premium ant. That question is what prompted this article, as well asat policy inception that cannot be changed without the the MariTrends presentation. The answer largely dependsconsent of the insured.on the type of insurance you have. But before I go any fur-ther, I want to be clear: despite the increasing frequency ofTwo of the most widely used P&I forms in the American active shooter/armed assailant events, the insurance marketfixed-cost market are the SP-23 and the SP-38. Both forms for this type of coverage is still very new and can only beinclude provisions related to sums the owner is found legal-described (generously) as emerging. The marine insurancely liable to pay on account of loss of life, or injury to, or market is even further behind the curve. Having said that,illness of, any person. Both forms also contain exclusions lets jump in. There are three to four policies we should con- like the war strikes and related exclusions clause mentioned sider in the context of active shooter/armed assailant events. above. So again, at best, were looking at maybe. HULL AND MACHINERY (H&M)One final thought on the P&I policy responsethese pol-Thispolicycoverspartialortotallossofvesselsandicies typically include a per occurrence limit. Limits of $1 machinery if the loss is the result of a covered peril. Themillion per occurrence are common. With this in mind, it American Institute Hull Clauses (AIHC), a commonlywould be imperative to understand how an occurrence is used form, offers very broad coverage against a host ofdefined. Even still, these limits wont go very far consid-perils, most of which seemingly have nothing to do withering an event that may result in multiple victims, all of active shooters/armed assailants. In reviewing the form,whom may seek restitution related to loss of life, funeral the only covered peril that seems to make sense is that ofexpenses, non-fatal injuries, illness, grief counseling, etc. assailing thieves, which refers to criminal acts committedAfterquicklyblowingthroughtheprimarylimits,you by persons other than passengers and crew members whowouldbelookingattheexcessliabilitypolicytomake gain access to the property by violence or force. But what ifup for the shortfall. Assuming there is an excess policy in the armed assailant paid the price of admission and couldplace, these limits may also be quickly eroded, particularly be considered a passenger?in a situation with multiple victims.Going a step further, the AIHC also includes a section onCOMMERCIAL GENERAL LIABILITY (CGL)war strikes and related exclusions. The policy specificallyOR MARINE GENERAL LIABILITY (MGL) excludes any damage caused by malicious acts or vandal- These policies cover a business for bodily injury, personal ism, unless committed by the Master or Mariners and notinjury, and property damage caused by the businesss op-excludedelsewhereunderthisWarStrikesandRelatederations, products, or injuries that occur on the business Exclusions clause.premises.Forpassengervesseloperators,thesepolicies typicallyaddressexposuresthecompanymayhavere-While it may be possible to remove the exclusion via en- garding the shore-based component of their operations dorsement (for a price), if the expectation is that the H&Mand may bridge the gap between their terrestrial and ma-FOGHORN 10'