Changing Times Create Changing Needs
The rise in violent crime over the last 24 months has left some businesses wondering how to protect their property and employees. Riots, political grievance, rising violent crime rates, and budgetary impacts are preventing law enforcement from providing basic security to communities. Compounded by increasing malicious attacks, companies who host, support, or house a large number of staff, customers, or children are most vulnerable. These threats are precarious to business resilience and income.
In August of 2020 in Kenosha, WI property damage exceeded $50 million over several nights of civil unrest. Despite mutual aid commitments from out of area law enforcement and National Guard resources the critical response gap in this case expanded toward infinity. In response, some local business owners deployed or encouraged ad hoc groups of armed citizens to protect their property. Though these efforts were successful in deterring further damage, the lack of vetting, discipline, training, organization, and integration with local law enforcement contributed to an unnecessary lethal confrontation.
Since, police response times are trending longer for a variety of reasons, including multiple events occurring simultaneously, the sheer size of events, and the reduction of law enforcement officers due to COVID-19 illness, exposure, and self-quarantine. The underlying causes of unrest remain and await only another triggering event. Because of this, it is important to understand that if there is no immediate armed response from the company, there may be casualties before 911 is ever dialed.
Coverage Considerations
It is imperative for businesses to examine their Active Assailant coverage, liability coverages, and security options to ensure they have the best outcome in the event of a malicious attack. Businesses should have a policy in place which includes:
crisis response,
client’s ability to vet and hire their own security consultant,
coverage for pre-event and post-event assessments,
reputational damages (not simply property damage), and
extended business interruption expenses.
Security Options
Companies should evaluate their security firm options. Alarms, cameras, lights, and guards can act as a deterrent, but will not respond when time is critical, and property and lives are at stake.
The security industry offers a variety of solutions from contracted security personnel to a de-centralized model who works in collaboration with local law enforcement to vet and train a business’s own employees to defend life and property.
Businesses should consider the option which reduces the critical response gap the most to ensure the most success protecting property and lives.
One of the myths related to security and insurance, general liability in particular, is that carriers will cancel coverage or increase premiums if a business hires armed guards, or has armed employees on site acting as a private security response team. While this may be true for a particular insurance carrier, it is not true across the board and other carrier options may need to be explored with a broker who has access to the widest range of carrier relationships. In fact, there are some carriers that offer businesses discounted rates on their Active Assailant coverage if a security company is hired, whether it be traditional contracted security or companies who train employees on site.
Take the time. Perform an evaluation of these critical pieces of your security plan.
ABOUT THE AUTHOR
Sean Connors
Sean Connors is a Vice President at Assurance, a Marsh McLennan Agency. With 24 years in the industry, Sean’s had a consistent focus up market and in transportation, manufacturing and higher education. He partners with executives to create agility and innovation across their enterprise with a keen focus on risk, strategy and people. Sean earned his Bachelor’s degree from Stockton University.
