PRODUCT: Workplace Violent Act Insurance program
COMPANY: Professional Liability Insurance Services, Inc. (PLIS), a coverholder at Lloyd’s of London
BEST RATING: A (Excellent)
AVAILABILITY: Coverage is available through licensed agents—no appointments necessary.
FOCUS: A workplace violence event is the perfect storm for revenue loss and liability. While no business wants to contemplate purchasing insurance for this type of tragedy, these types of events are increasing.
All businesses are vulnerable, whether it’s a casual office setting or an establishment with late hours and frequent customers. Although injury is the most obvious cause of loss, residual community concerns may impact a business owner’s revenue and future growth.
“One single violent act at your premises or neighboring business can immediately result in a drop in customer foot traffic,” explains Rebecca Garcia, Vice President of PLIS, Inc. “Standard insurance policies may not provide the relief for depleted revenue stream with related costs because there is no covered peril to trigger those policies.”
In addition to struggling with the event itself, companies also face critical and unexpected expenses and crisis management issues in the aftermath.
PLIS, Inc. responds with the Workplace Violent Act Insurance program—a multifaceted, standalone product that addresses this growing area of risk.
COVERAGE DETAILS: The policy responds to a workplace violent act event, workplace violent act threat event, workplace violent act against offsite employee event, or stalking event as more specifically defined.
The policy provides four types of coverages for these events: business interruption and incident response expenses; bodily injury (defense and indemnity) caused to third parties; and property damage associated with violent acts. Events must occur at a covered location for coverage for bodily injury and property damage.
Garcia notes that insureds may also purchase radius coverage separately for business interruption and incident response expense, which “is designed to apply to violent act events that occur in neighboring businesses up to a surrounding five-mile radius area.”
Incident response expenses include those for crisis management, public relations, rehabilitation, medical, counseling services, security services, funerals and biohazard clean-up. The deadly weapon can include, but is not limited to, a gun, bomb, vehicle, knife or caustic substance.
Insureds also have access to a 24/7 event crisis management helpline through SRM via telephone or email. Crisis management is structured to respond to four areas of concern.
First, every business starts with a basic plan for security and training. Second is assistance with intervention strategies for evolving or high-risk situations. Third, SRM provides essential crisis management response at the time of an event, including media statements, customer and employee assistance, government agency coordination and more. Lastly, SRM assists with the recovery of the brand name.
UNDERWRITING: The program includes total aggregate limits of $71 million. Coverage includes limits up to $40 million for business interruption loss of income; up to $30 million per policy period for third-party bodily injury claims; up to $1 million per policy period for property damage; and corresponding incident response expenses for each of the coverages outlined above.
MINIMUM PREMIUM: None. Each risk is underwritten based on its individual merits.
TARGET: Currently, any businesses in industries such as restaurants, retail stores, movie theaters, dealerships, physician offices, hotels and more. Only schools, hospitals, airports, property management, and government municipalities are not part of the target market.
COVERAGE TERRITORY: All 50 U.S. states.
CONTACT: PLIS Product Team; Professional Liability Insurance Services, 5802 Thunderbird, Lago Vista TX 78645; 800-761-7547.
Julia Smith is an underwriter for PLIS.
This document is for informational purposes only and does not function to replace or change the actual policy language.
