XL Catlin Helps Companies Recover from Acts of Workplace Violence

PRODUCT: Workplace violence and stalking threat insurance

COMPANY: XL Insurance America Inc.

BEST RATING: A (Excellent)

AVAILABILITY: Coverage is available through appointed brokers on a wholesale and retail basis.

FOCUS: In August 2015, two journalists were shot during a live broadcast in Virginia. Four months later, 14 people were killed and 22 were seriously injured in a terrorist attack at the Inland Regional Center in San Bernardino, California. Workplace violence can happen anywhere, any time.

According to the Federal Occupational Safety and Health Administration (OSHA), about 2 million workers are victims of workplace violence each year. OSHA ranks workplace violence as the second leading cause of worksite deaths in the U.S.—in 2014 alone, 403 Americans were murdered at work.

The end result is not only tragic, but costly. The National Institute for Occupational Safety and Health estimates the annual cost of workplace violence for employers totals about $121 billion. This includes lost work time and wages, reduced productivity, medical costs and workers compensation payments, and security expenses. Additionally, employers may incur the cost of employee medical care, psychiatric counseling, and rest and rehabilitation.

“Businesses are being forced to rethink existing security measures to better protect their employees,” says Denise Balan, America’s head of XL Catlin’s crisis management insurance business. “Any act of workplace violence can result in employee injury, business interruption and reputational damage.”

XL Catlin’s workplace violence and stalking threat insurance combines expense reimbursement with access to crisis management consultants. It is designed to help businesses minimize the threat of workplace violence and, in the event that it occurs, help them recover.

A special endorsement is also available to provide companies and employees coverage for an off-site incident—an act of workplace violence that may occur at a client or vendor’s facility. “For example, organizations lost employees traveling in Paris during the terrorist attacks last November,” Balan says. “This extension of coverage can be very important in helping the client manage numerous expenses related to this unfortunate overseas event.”

UNDERWRITING: Coverage options include legal liability to address legal expenses from lawsuits that may result from a covered event; expenses related to public relations counsel, psychiatric care, medical or dental care, employee counseling, temporary security measures, rehabilitation expenses and personal accident expenses; business interruption expenses for an act of workplace violence or a stalking threat; and consultant expenses. Capacity includes limits available up to $25 million, annual policy limits and $0 retention in most cases.

MINIMUM PREMIUM: $1,200.

TARGET: The policy is specifically designed for sectors that have experienced violent acts, such as midsize businesses in the higher education, hospitality, manufacturing and health care arenas.

“According to the U.S. Bureau of Labor Statistics, the workplace violence rate within the health care industry is more than three times greater than the rate for all private industries,” Balan says. “And midsize businesses do not typically have easy access to crisis management resources. This policy offers both coverage for expenses and access to our risk management consultancies to help handle a crisis situation.”

COVERAGE TERRITORY: AL, CO, CT, DE, ID, IL, IN, MA, MO, NE, NJ, NM, NV, PA, RI, SC, TN, UT and WA. The remaining states will be approved by the end of the year.

CONTACT: Denise Balan, crisis management head, The Americas; XL Insurance America Inc., 200 Liberty Street, 25^th Floor, New York, NY 10281; 212-915-6933.

Ronimarie Acord is an IA contributor.