10 Crucial Civil Unrest Safety Considerations for Your Business and Your Employees

After weeks of demonstrations, discourse and civil unrest, the nation remains on edge. Preparing now for further turmoil can help mitigate potential risk.

By: Jared Shelly | July 1, 2020

It’s been a little over one month since George Floyd died after being detained by three Minneapolis police officers.

After weeks of protests for racial equality, an anxious nation faces an unknown future. For business owners, it’s hard to forget those first few nights, when peaceful protests were overshadowed by rioting, citywide curfews and street closures.

While many of the protests began peacefully, and many of the more recent protests have remained peaceful, business owners may still be concerned about future demonstrations.

Riots add uncertainty and may halt business operations. That means business owners need to prepare for any and all potential scenarios going forward.

Here’s a 10-step checklist for resiliency amid civil unrest:

1) Make a Plan

Determine logistics for employees, closing procedures, equipment shut-downs, and business continuity procedures — well before you need them.

“In the middle of riot or looting is not the time to make a plan. You need to execute a plan well in advance,” said Mark Walls, vice president of communications and strategic analysis at Safety National.

2) Monitoring

Keep your eye on social media to learn about protest routes and see if the mood has turned from peaceful to contentious.

“I search #DallasProtests when I need to know what is being tweeted and see where spontaneous protests might pop up,” said Renata Elias, senior consultant at Marsh Risk Consulting’s Strategic Risk Practice, who lives in the Dallas area.

3) Communicate

Once you learn about protest plans and determine how they might impact your business, deliver that information to employees and customers. If you’re closing early, notify your community on Facebook, Instagram or Twitter. Do a mass SMS message or email to staff. When in doubt, over-communicate.

“Develop your strategy and messaging ahead of time. It’s always easier to tweak if you have to,” said Elias. “It’s very difficult to put messaging together on the fly for employees, customers and other stakeholders.”

4) Secure Your Space

If you have the resources, install a steel gate to protect your entryway. Also, lock valuables and fragile items away and out of view. If you have physical security, increase patrols around your space and use cameras to watch from afar. If necessary, block windows and doors with plywood.

“There has been a lot of demand for plywood and a contractor to put it up, so give yourself time to get those things in place,” Elias said.

5. Train Staff on Power-down Procedures and Protect Sensitive Equipment.

Use off-peak hours to practice shutting down high-tech equipment and powering it up again. Identify critical equipment and the cost of disruption if it were stolen or broken. Imagine worst-case scenarios and work backwards.

“Imagine a crucial piece of equipment is gone. What are you going to do? Or if it’s broken, how long will it take to repair?” said Jack Holt, risk control consulting director, business resiliency at CNA Insurance.

6. Help Employees with Travel Logistics.

Street shutdowns and highway exit closures can happen with little warning. Also, curfews might overlap with work hours at essential businesses like hospitals or transit authorities. The best plan is to be mindful of your people. Go over shelter-in-place procedures in case it’s too dangerous to leave.

“Give people time to get home. Be mindful of your people and the time it takes them to travel to and from work. You can’t just close your store or restaurant 30 minutes before curfew,” said Walls.

7. Lookout for Mental Well-Being.

The current political climate can produce serious anxiety and stress. It’s important to have resources available to help employees talk things out. If you have an employee assistance program (EAP) to offer mental-health services, make sure to promote it to employees so they know they’ve got somebody to talk to in times of stress.

8. Focus on Business Continuity.

Think about how you’re going to operate in the future. Can you move to a different location? Can people work from home (or continue working from home if you’re still closed due to the pandemic?)

“Review plans and procedures so if your people can’t get into the workplace, or you lose power or technology, you have a continuity plan that addresses those needs so you can continue operating,” said Elias.

9. Look Out for Partners.

Suppliers and other partners may feel pressure to deliver goods or services despite civil unrest. If things are getting too unpredictable near your business, make sure suppliers understand that you’re comfortable with them fulfilling your order another day.

“It is important to be ready to inform suppliers when it is not safe to receive deliveries,” said Holt. “That will help suppliers protect their drivers and assets.”

10. Include your Insurance Broker in the Process.

A broker should be a defacto member of your crisis team. They’ll help you develop a strong response plan, better understand your policies, and expedite any claims that might occur.

“Start working closely with your insurance broker before something happens,” Elias said. “If you already had that discussion and have been proactive, it makes the claims process much easier.” &

Jared Shelly is a journalist based in Philadelphia. He can be reached at [email protected].

How a Carrier Partner Can Help Navigate a Challenging Management and Professional Liability Market

A combination of a choppy economy with increased claims frequency and severity could lead to rate increases in the Management & Professional Liability market.

By: Risk & Insurance | April 3, 2024

Rates in the management & professional liability (M&PL) markets were on the rise from 2020 to early 2023 and are now falling rapidly.

M&PL divisions manage a number of different insurance products including management liability (D&O), professional liability (E&O), employment practices liability (EPL), fiduciary liability policies, cyber, etc. In 2023 and into 2024, a big influence on the marketplace has been the extremely aggressive and softening public company D&O market.

Though these rates have been softening for management liability, that may change over the next few years as companies continue to adjust their business models motivated by economic uncertainty. Layoffs were up nearly 200% last year, Forbes reported, even as other recession indicators, like the inflation rate, improved. A recession could lead to an increased claim activity and force carriers to raise rates.

“Whenever there is a meaningful downturn in the economy, we tend to see claim frequency pop up,” said George Schalick, Jr., senior vice president of the Management and Professional Liability Division at Philadelphia Insurance Companies (PHLY).

With continued fiscal uncertainty, businesses potentially already burdened with pandemic-related claims should seek a carrier with a long history in M&PL products. They will provide much-needed risk management guidance and be better positioned to support their insureds during market fluctuations.

Why Insureds Might See an Uptick in M&PL Claims

George Schalick, Jr., Senior Vice President of the Management and Professional Liability Division, Philadelphia Insurance Companies

The current soft market might come as a bit of a surprise as it does not track with previous underwriting cycles and economic conditions. Afterall, many privately held and non-profit organizations struggled during the early days of the pandemic with shutdowns and rapidly declining revenues. But the Government assistance programs, like the Paycheck Protection Program loans, helped keep many afloat during the tough times.

“During COVID many organizations stopped doing business until they were able to sort out all of the health and safety challenges,” Schalick said. “They were forced to lock down, but then all the government assistance programs allowed them to keep people employed. The increased volume of claims we anticipated we would see coming from the lockdowns and restrictions that were imposed upon businesses in the U.S. didn’t manifest at first.”

“Just because there wasn’t an onslaught of reported claims at the beginning of the pandemic, doesn’t mean the circumstances that would give rise to a claim being reported didn’t occur. Courts and the judicial system were closed or slowed and now that they are back open, we’re starting to see the circumstances that occurred during the COVID lockdowns becoming claims today,” Schalick said. “Litigation is progressing.”

Added to the delayed pandemic litigation is a concern over newer claims that might be filed as the country inches toward an economic downturn. Though a recession was avoided in 2023, experts think a soft dip could occur in 2024, with 76% of economists saying there’s a 50% or less chance of an economic downturn this year — that almost always results in more management liability claims.

“During the Great Recession in 2008, we saw an almost immediate spike in claims because of the economic conditions and the pressure it placed on organizations. They were making personnel changes with significant belt tightening almost immediately.” Schalick said.

What’s in Store for M&PL Policy Rates in 2024?

Despite an uptick in claims and increased economic uncertainty, management liability rates haven’t increased, resulting in market-wide pricing levels that may not meet the increased pressure of rising settlements and jury verdicts.

“Rates are going the other direction and settlement values are not falling,” Schalick said.

The mismatch between rates, claim frequency and severity is, in part, because carriers experiencing the dramatic soft market in the public D&O market are seeking premium gain in the private and non-profit market.

“In the public company market, the rates have been decreasing significantly. The rates were increasing in the private, not-for-profit market, and rightfully so, but there’s a desire to supplement overall mid-size D&O for carriers who also write private not-for-profit, and they see that as an opportunity to aggregate premium,” Schalick said. “So the always competitive landscape in the private, not-for-profit market has dramatically increased in the last 18 to 24 months.”

Still, companies of all sizes and types should be concerned about management liability rates in the future. Legal system abuse is resulting in increases in both the amount of litigation and the size of verdicts plaintiffs are receiving.

Certain areas of the country are particularly vulnerable to this type of legal system abuse. As a result, insureds in these localities are likely to be vulnerable to rate increases.

“The environment is so positive for the plaintiff that forces premium increases so carriers are able to stay in that market long term,” Schalick said.

Why a Tenured Carrier Partner Can Help Insureds Navigate An Uncertain Market

It’s clear that insureds are facing an uncertain M&PL market over the next few years. Fortunately, carriers with a long history in the M&PL space will be there to offer stability.

Philadelphia Insurance Companies has been supporting this market for 35 years. PHLY is committed to offering long-term rate stability, even as economic and claims trends start to push premiums upwards. They have an appetite for all sorts of companies, large and small, for-profit and nonprofit alike.

“We’ve been at this game for a long time and are one of the most tenured underwriters in this space,” Schalick said. “We like to stay very consistent.”

PHLY has worked with both for-profit and non-profit on management liability policies. With dedicated M&PL teams throughout the company’s 13 regions, PHLY provides the support agents and brokers are looking for on behalf of their clients. The teams know their regions well and can respond to local trends. They’re also dedicated to making the renewal process as easy as possible for their partners and policyholders.

“We have real confidence in our results, so we focus a lot on making the renewal experience as painless as possible for all agents and insureds,” Schalick said.

The company is also investing in tools to help insureds avoid losses. Earlier this year, they launched a new online risk management platform, PHLYGateway, which offers resources for insureds on how to create an employee handbook and trainings on issues such as recognizing workplace sexual harassment and discrimination.

If insureds have questions, they can consult a Best Practices Help Line, provided via the platform. That way, they can get on the spot risk management guidance to help them prevent claims.

To learn more, visit: https://www.phly.com/mplDivision/managementLiability/default.aspx.

This article was produced by the R&I Brand Studio, a unit of the advertising department of Risk & Insurance, in collaboration with Philadelphia Insurance Companies. The editorial staff of Risk & Insurance had no role in its preparation.