Workplace Violence Insurance a Concern After recent Shootings

The Louisville Bank shootout was one of over 180 mass shootings in the US through April 2023. Another one occurred just this week which brings the total to over 200 mass shootings so far this year.(1) Uniquely, this shootout, which took the lives of four bank workers, was not done by a random shooter, but an employee that was about to be terminated by the bank itself. This unfortunate incident, however, highlights a concerning issue that faces many companies.

Workplace violence is defined as any act or threat of physical violence, harassment, intimidation, or other threatening disruptive behavior that occurs at the work site. It ranges from threats and verbal abuse to physical assaults and even homicide. (2) The threat of someone attacking your office in the middle of the workday is a known threat to workers’ safety and security.

While disturbing on their own, there is a more disturbing trend concerning workplace violence. Techjury compiled a list of statistics reflecting the current trends regarding this issue and the numbers paint a very grim picture:

1. 743 million, or about one in four workers worldwide experience some sort of violence or harassment according to Gallup. About 6.3 percent say they have experienced all three types, psychological, physical, and sexual.
2. Two million Americans are injured on the job including being the victims of being attacked,
3. About 1 in 7 don’t feel safe in their working environment
4. 45% don’t know their workplace’s safety plan.
5. Half of workplace violence incidents occurred in the healthcare industry with 70 percent of nurses and about 47% of ER doctors reporting some type of assault.
6. In another big topic in the US, 44 percent of teachers reported a violent incident, whether being attacked by a student or even school shootings, with many going under reported due to threats of retaliation,
7. 7% of workplace violence results in fatalities.(3)

In many companies, most do not carry a specific workplace violence or active shooter coverage in case something like this happens. A General liability coverage does not cover the necessary costs associated with a specific active shooter policy. These policies when in place cover a variety of different costs. They can range from:

• Property Damage such as destroyed doors, windows, and computers:
• Lost income from being forced to shut down or reputational damage:
• Counselling from the psychological trauma inflicted by such an event:
• Potential medical expenses stemming from injuries and deaths.

Most companies do not carry a specific workplace or active shooter coverage in case something like this happens. A General liability or Property policy coverage does not cover the necessary costs afforded by a specific active shooter/assailant policy. Standard property policies only trigger when there is specific property damage for business interruption recoveries and general liability or property policies wont typically cover first party costs outside of property replacement. Active shooter/assailant policy covers a variety of other costs which can address the following risks:

• Property Damage such as destroyed doors, windows, and computers:
• Lost income from being forced to shut down or reputational damage:
• Counselling from the psychological trauma inflicted by such an event:
• Potential medical expenses stemming from injuries and deaths.
• First party costs such as immediate increased security costs, barricades, funeral costs, counselling and a host of other non-property damage related costs

Many do not see the need or perhaps they feel safe because they either are not in a location likely to be attacked or have the proper safeguards in place to prevent it. But like the Louisville shooter, many of these incidents are internal not external and traditional insurance coverages may be inadequate.

There may be limited coverage for some of these risks in an employment practices policy but that is usually very limited. There are other coverages in a G/L or Property policy, however, the individual situation may not trigger coverage without specific liability or property damage. It is best to discuss your risk profile with your broker to decide what coverages are best for you.