S
ome commercial real estate owners are struggling to secure adequate liability coverage for assault and violent crime exposures due to increasing claims, which has led insurers to restrict coverage. Not all commercial general liability policies cover assault and battery, making it essential for businesses to manage these risks strategically.

    Insurers are becoming more selective about the risks they take on, particularly in high-crime jurisdictions such as California, Florida, Georgia, Illinois, New York, and Texas. Settlement amounts are rising, resulting in higher rates, especially for properties with significant habitational exposure.

    Policyholders with a history of claims are facing rate increases of 10-20%, while insurers are also reducing umbrella/excess limits due to large losses. Even accounts with no losses are seeing capacity curbed, with previously quoted $25 million layers now reduced to $10-$15 million.

    Securing adequate limits for assault and battery, sexual abuse, and molestation risks is a major challenge, particularly for multifamily apartment complexes. Lenders often require full coverage, but insurers are reluctant to offer such terms.

    Insurers are scrutinizing geographical risks, crime scores, loss history, security, and risk management when evaluating liability coverage. As a result, many accounts have sublimited or excluded assault and battery coverage, with some carriers offering sublimits that fall short of the general liability limit.

    To secure full coverage, policyholders may need to pay surcharges or look at alternative attachment points. Mid- to large-sized real estate portfolios are now facing deductibles or self-insured retentions of $50,000-$100,000 or more for full coverage, compared with $5,000-$25,000 previously.

    Coverage becomes more accessible once a policyholder exceeds a $50,000 or $100,000 self-insured retention. Insurers are becoming increasingly selective about when and where they deploy full limits for assault and battery and sexual abuse risks, making it essential for businesses to carefully manage these exposures.