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Technology Insurance
Loss Scenarios for IT Firms
 

Employee threatens supervisor
XYZ Company terminated an employee for nonperformance. The employee had made threats that he would retaliate against his supervisor if anything ever happened to his job. Immediately after his termination interview he became distraught, produced a knife from his desk, and stated that he would make the company pay for his loss of his job.

XYZ retained a security consultant to advise it as to how to respond to this situation and survey the security procedures at XYZís offices. XYZ also hired additional security for its office and arranged for security protection for the supervisor at her residence when it was disclosed the disgruntled employee knew her address. The additional security at the office and the supervisorís residence was provided for 10 days.

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Work Violence can result in homicide

 

Homicide is the second-leading cause of death on the job, behind motor vehicle crashes, according to the National Institute for Occupational Safety and Health. It is the leading cause of workplace death among women, though men face triple the risk of being victims.

Every week, nearly 20 workers are murdered at their place of work. At special risk are companies that deal with the public, exchange money, deliver goods and services, work with unstable or volatile persons, or operate late at night.

The Insurance Information Network (IIN) says that workplace violence criminal cases resulted in 650 homicides, 2 million assaults, and 6 million serious threats reported each year in the workplace, two-thirds of these are preceded by behavioral red flags. Does your place of business have the right techniques of conflict resolution to combat violence in the workplace?

 

What Is Workplace Violence?

Workplace violence is any physical force or rough action intended to or resulting in physical or mental harm to people where they work for their living.

Warning signs are numerous: dramatic behavior changes, making threats, blaming others, voicing disgruntlement in a chronic fashion, and initiating intimidation.

 

Past Employers can be held liable for workplace violence

Past employers can be held just as liable for a worker's violent behavior as where he works at the time of an incident. For example, Allstate Insurance was sued by the families of a victims for failing to tell Fireman's Fund in a 1990 reference check about the perpetrator's unstable mental condition, and that he frequently brought guns to work.

 

Violence in the workplace is costly to companies

The average workplace-violence incident costs employers $250,000 according to law-enforcement agencies. USA companies lose $1 billion annually in higher workers-compensation costs according to workplace violence statistics. Companies also suffer low productivity, greater inefficiency, reduced competitiveness and very bad public relations.

   
 
 
 

Workplace Violence Insurance

 

What is Workplace Violence Insurance?

One of the newest and most frightening exposures facing employers is workplace violence. Workplace Violence insurance coverage is protection against the expenses that a company can face resulting from incidences of workplace violence, including the cost to hire independent security consultants and public relations experts, as well as payment of death benefits and business interruption expenses.

 
 

When do I need Workplace Violence Insurance?

Employers have a duty to provide each employee with a safe and secure work environment. The workplace should be free of hazards that could potentially bring harm or even death to the employee under federal and state OSHA regulations. Under this theory, an employer is vicariously liable for any actions committed by its employees within the scope of their employment.

At special risk are companies that:

  • Deal with the public
  • Exchange money
  • Deliver goods and services
  • Operate late at night

Even companies that do their best to provide a positive, fulfilling work environment face exposure to threats caused by:

  • Criminals
  • Disgruntled employees
  • Angry customers
  • Stalkers
  • Other violence-prone individuals

Workplace violence incidents can be devastating, to a company. Conflict resolution can prevent violence in the workplace. Let us help you get your business environment back together after a workplace violence incident.

As employees try to beat the clock, meeting pressurized deadlines, how much stress in the workplace goes undetected? This stress might come from their work environment or their personal life. Sooner or later, employees or customers need to let off steam. You hope it doesn't result in violent behavior in your workplace.

 
 

Why do I need Workplace Violence Insurance?

Workers compensation policies cover on-the-job injuries, but generally exclude coverage for acts of lethal force or the threat of lethal force. That means you need separate insurance coverage to protect you against the aftermath of workplace violence.

Workplace violence is on the rise. According to Pinkerton Consulting's seventh annual survey of security professionals in the Fortune 1000, workplace violence ranked as the most significant concern for US businesses for the second year in a row.

Wherever workplace violence happens, employers suffer direct and indirect costs. Employers who fail to protect their employees against violence in their workplaces are subject to government citations and costly civil litigations and judgments.

Problems that relate to workplace violence:

  • Compensation claims
  • Insurance costs
  • Lost productivity
  • Counseling for employees
  • Grievances
  • Lawsuits
  • Extra security
To protect your business from this risk, InsureCast offers Workplace Violence Insurance Coverage. Please go to our online CoverageCoach questionnaire to get a free no obligation Workplace Violence Insurance quote.
 
 

Coverage Highlights

  • Broad expense coverage for workplace violence events.
  • Broad definition of workplace violence expenses.
  • Broad expense coverage for stalking threats.
  • Broad definition of stalking threat expenses
  • Coverage for loss of business income
  • Broad definition of business income
  • Broad coverage for prior losses available
  • Broad definition of insured, including the company and its directors and officers; employees, including seasonal, temporary, and leased employees; volunteers; and guests on the company’s premises.
  • Death benefit of $25,000 for each employee victim up to the total limit of liability available.
  • Crisis management expertise included within the expense coverage feature.
  • Worldwide coverage.
Actual coverage is subject to the language of the policies as issued. Please do not hesitate to contact InsureCast for workplace violence sample policies.
 
 
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