Do You Need Workplace Violence Coverage?

The employee shooting at Hartford Distributors in Manchester, Conn., this August serves as a powerful reminder of the prevalent threat of violence in the workplace and of potential holes in standard business coverage. The greatest number of violence incidents occurs in companies that deal with the public, exchange money, deliver goods and services, and operate late at night, but no business is immune. Criminals, disgruntled employees, angry customers or even stalkers can pose threats. Any situation that puts employees under excess stress – from office politics to a romance gone wrong – is a risk.

The costs of an incident can be extensive, especially considering the cost of hiring independent security consultants and public relations experts, payment of benefits and business interruption expenses. Medium- and long-term losses include compensation claims, lost productivity, counseling for employees, extra security and lawsuits.

Employers commonly insure their business against violence using a combination of workers’ compensation, general liability and employment-practices liability coverage. Remaining holes can be filled with specialty workplace violence coverage.
According to a July report by the U.S. Bureau of Labor Statistics, an average of 564 people per year were killed at work between 2004 and 2008. The threat of an incident remains a significant concern for all types of businesses. To protect yours, discuss ways of mitigating your risk with the insurance professionals at CLG Insurance.