While violent crime is down across the country, serious regional spikes in mid-sized cities like Memphis and Detroit are having a real impact on the insurance landscape.
In particular, these spikes are affecting the scope of coverage in general liability (GL) policies. With the number of claims growing—and the cost of each claim along with it—underwriters are reconsidering their provisions for assault and battery (A&B) coverage.
For real estate owners and operators, this can bring significant challenges. However, those who stay on top of the challenge can manage it well—by understanding the limitations of the system, actively managing risks and securing creative insurance solutions.
Understand the Challenge
It all comes down to data. In 2026, with information widely available within seconds, there’s no reason for an insurer to take a chance if that chance feels risky.
Underwriters are using data analytics, specifically crimes scores to identify high-crime areas and restrict coverage in those places. This doesn’t mean coverage isn’t available, but it might mean the coverage is extremely limited or only available to specific owners.
Underwriters are also analyzing data to identify the number of A&B claims and what these claims cost. This information tells them that the math doesn’t work—and the premiums won’t be enough to cover the costs of claims.
All of this has created the current hard market. Real estate owners and operators who need to secure A&B coverage to satisfy lending requirements will need to take steps to ensure they can secure the appropriate coverage and protections in spite of the challenges.
Actively Manage Risk
The main approach is to actively manage the risk of assault and battery on site. While real estate owners and operators can’t keep violence out of their neighborhoods, they can take steps to control what happens in their buildings and on their property.
The most important risk management practices include:
- Physical deterrents. In many cases, the presence of security measures can be enough to protect the site. Deterrents like surveillance systems and well-lit parking lots keep away someone looking for an easy target.
- Background checks. If the people on site aren’t seeking trouble, the likelihood for criminal activity is lower. Perform background and financial checks on any potential tenants and employees to protect the site.
- Security awareness training. Raise awareness of the threat by sharing information about building security with all employees and tenants. Be sure to include a threat reporting process and an emergency action plan for them to follow.
- Workplace violence policy. Implement a strong policy around workplace violence—including reporting procedures and protection for victims—and be sure to train all employees and managers in the policy.
All of these risk management practices have a double benefit: Not only do they minimize the threat of violence, but they can also help lower insurance premiums.
Identify the Right Insurance Solution
With A&B coverage becoming more challenging to secure, real estate owners and operators will need to find another way to protect their properties from crime. Affordable coverage is not impossible to find, but it may be important to take a creative, flexible approach.
Some options include:
- A&B exclusions are being added to general liability policies more frequently. Many insureds are not aware of them. Proactive real estate owners can mitigate risk through safety measures that deter criminal activity, while also presenting those improvements to underwriters to have the exclusion modified or removed.
- A&B products are available which offer primary limits with no weapons exclusions, no sublimits, and no state or city exclusions. Lender-compliant deductibles are included and can be designed to support a wide range of occupancies. A People Trafficking extension is also available.
For real estate owners and operators struggling to secure appropriate—and affordable—coverage for their buildings, it’s important to work with an experienced real estate insurance broker who understands the needs of the business. Not only can this broker assist with risk management solutions, but they can also identify relevant insurance solutions and help secure coverage that meets the needs of the business today.
