Industry News
Advances in Active Shooter Coverage Leads to More Protections Against Broader Violent Events
Author, Chase Hixson, Account Executive, Rancho Mesa Insurance Services, Inc.
The need for insurance to cover workplace violence is at an all-time high. Traditionally, this type of insurance policy has been referred to as Active Shooter Coverage in response to situations involving mass shootings. As its name implies, the overage responded only to active shooter scenarios. They did not cover other types of workplace violence that can occur. As unique acts of violence occur, coverage continues to change to cover a broader spectrum of events.
The need for insurance to cover workplace violence is at an all-time high. Traditionally, this type of insurance policy has been referred to as Active Shooter Coverage in response to situations involving mass shootings. As its name implies, the overage responded only to active shooter scenarios. They did not cover other types of workplace violence that can occur. As unique acts of violence occur, coverage continues to change to cover a broader spectrum of events.
Active Violence Coverage offers protection when an event may or may not involve a shooter. One important development in this new coverage is that it also responses to threats of violence. A heated interaction, though no physical harm occurred, could still be damaging to those involved and have the potential to develop into something larger over time. This type of coverage will cover the costs for hired security, grief counseling and mediation, coverage of employee salaries for lost time, business interruption costs and security consultants.
This subtle change in coverage can make a significant difference to the safety and well being of the people in your organization.
To learn more about Active Violence Coverage for your organization, contact Rancho Mesa Insurance Services, Inc. at (619) 937-0164.
Workplace Violence Insurance Surges in Aftermath of Shootings
Author, Sam Brown, Vice President, Human Services Group, Rancho Mesa Insurance Services, Inc.
In response to the hundreds of mass shootings taking place each year, the insurance marketplace has produced new workplace violence products to help employers and employees recover from a crisis.
Author, Sam Brown, Vice President, Human Services Group, Rancho Mesa Insurance Services, Inc.
In response to the hundreds of mass shootings taking place each year, the insurance marketplace has produced new workplace violence products to help employers and employees recover from a crisis.
U.S. employers have an obligation for duty of care for the safety, health, and security of employees (see Occupational Safety and Health Administration (OSHA) Act of 1970). Duty of care requires protection against workplace violence hazards.
A mass shooting is an attack resulting in 4 or more.
| Year | # of Incidents |
|---|---|
| 2017 | 327 |
| 2016 | 385 |
| 2015 | 333 |
It is the employer's obligation to protect its employees from violence. Homeland Security defines an active shooter as “an individual actively engaged in killing or attempting to kill people in a confined and populated area.” While OSHA describes workplace violence as “any act or threat of physical violence, harassment, intimidation, or other threatening disruptive behavior that occurs at the work site.” What is your organization doing to protect its people from these types of events?
Over the last three years, the United States recorded an average of 348 mass shootings per year.
| Description | Cost |
|---|---|
| Support for survivors and families of victims | $2.7 million |
| Cleanup, renovations, and other facility changes | $6.4 million |
| Settlement payments and other legal costs | $4.8 million |
Costs to Consider
As victims, families, and co-workers struggle to heal after losing friends and loved ones, the costs continue to mount.
Aside from treating survivors, consider some of the costs from the Virginia Tech University shooting: survivor support, cleanup, renovations, facility changes, settlement payouts and legal costs.
How would your organization absorb the cost of such an event?
Workplace Violence Policy Coverage
In addition to providing a consultant to guide businesses through an emergency event, a covered event will trigger legal liability coverage to address legal expenses. These expenses may be related to the following:
- Business interruption expense
- Defense and indemnity expenses
- Public relations counsel
- Psychiatric care
- Medical or dental care
- Employee counseling
- Temporary security measures
- Rehabilitation expenses
- Limits start at $1,000,000 with $0 deductible
Among other underwriting considerations, when pricing workplace violence policies, carriers factor in operations like exchanging money with the public, working with volatile or unstable people, providing services and care to the public, and working where alcohol is served. Take a look at your organization's operations to see if there is a risk.
Please contact Rancho Mesa Insurance Services to discuss whether this insurance is right for your organization.
Information sourced from McGowan Program Administrators.