Insurance coverage options to consider when it comes to workplace violence

BY SHANNON HILDING, J.D., CRIS

Workplace violence is becoming a more prevalent risk. Despite the pit in your stomach you feel when thinking about the topic, violence must be addressed from a preventative and business continuity standpoint. Your proactivity could end up protecting the livelihood of your employees and company.

It’s important for business owners to consider the physical, emotional and financial risks posed by workplace violence and how they can protect themselves.

You may think workers compensation covers costs, but this may not always be the case. There are other considerations too, such as providing counseling, crisis communications and lost revenue. One option is workplace violence insurance, which exists to address expenses resulting from an actual or threatened incidence of violence.

Be Aware of Gaps in Workers Compensation

At the forefront of business owners’ minds is the physical safety of their employees. This often leads to the assumption that expenses incurred due to a violent act in the workplace are covered under workers compensation.

Yet this topic falls into a gray area for workers compensation. Coverage can be very fact-specific (for example, is the motivation behind the attack truly work-related or a personal issue that erupted in the workplace?) and may be affected by a patchwork of state laws.

Protect Business Operations

Additionally, considering only medical expenses from such an event leaves a great deal of financial exposure on the table. You could, in turn, leave your balance sheet exposed.

After all, the impact of violence in the workplace is not limited to physical wellbeing. It has a ripple effect that could affect the overall financial wellbeing of your company. A traumatic event like violence has the potential to shut your company down for multiple days. And media coverage could negatively impact your company’s public image. Insurance carriers are now offering workplace violence policies to assist businesses with expenses and liabilities that may ensue after an event. Such coverage is a necessary piece of business continuity planning that is there to support and protect your business during a time of great distress.

While the hope is that such coverage is never needed, the reassurance that it is available can be invaluable.

What is Covered in Workplace Violence Policies

Business Income and Extra Expenses

Covers lost revenue, expenses incurred to get the business back up and running, temporary location costs, and ongoing expenses such as employee salaries and wages for temporary replacement workers.

Public Relations and Crisis Management Expenses

Costs associated with communicating about the event with employees, customers and the public.

Additional Expenses

Heightened security assessments and personnel, counseling services, medical or dental care, sanitation services, death benefits to survivors and forensic analysis.

It's important to think proactively about workplace violence. Talk with your insurance broker and safety team about how best to protect your business from such threats. While discussing the threat of violence remains uncomfortable, it has the potential of protecting people's lives and your company’s future.

Shannon Hilding, J.D., CRIS is Director of Service, Property & Casualty for The Miller Group. She can be reached at shannonh@millercares.com