Mitigating Protest Risks with Insurance Coverage, Risk Assessment

Amid increasing global protests and civil unrest, organizations should understand how their insurance coverage can be utilized and to take proactive measures to mitigate potential risks, according to an analysis by Gallagher.

More than 100 college campuses experienced pro-Palestinian protests and encampments this year, some of which resulted in violent confrontations, Gallagher noted. In addition, political conventions taking place in Milwaukee this week and in Chicago next month are expected to attract protests. Political tensions might be heightened by the attempted assassination of former President Donald J. Trump in Pennsylvania on July 13.

While only an estimated 7% of protests result in violence, the impact on organizations can be significant, leading to bodily injury, reputational harm, and property damage, Gallagher states. It emphasizes the importance of understanding the landscape and preparing for potential disruptions, regardless of the organization’s sector.

“This is not an issue affecting only universities and law enforcement agencies. Any company or local business may be the subject of a protest. Usually these are peaceful and might only generate local press coverage, but when demonstrations get out of hand or spread, neighboring homes and businesses can be affected,” the broker cautioned.

The Gallagher analysis highlights how property insurance, general liability, workers’ compensation, and management liability policies can be triggered in the event of a protest or civil unrest:

• Property insurance may cover damages to buildings, equipment, inventory, or other physical assets caused by protests or civil unrest. It could also include business interruption coverage due to loss of use or access to premises.
• General liability and umbrella/excess liability could be invoked if an organization is legally held responsible for bodily injury and/or property damage caused by protests or civil unrest.
• Workers’ compensation insurance could be triggered if an employee is injured during protests or civil unrest while performing their job duties.
• Management liability policies can be triggered in various ways during a protest. These include general decision making, use of law enforcement, discrimination and free speech, employment practices and retaliation, and due process, Gallagher noted.

Gallagher cautions organizations to be aware of any insurance policy exclusions for strike, riot or civil commotion in their policies, which could result in gaps in coverage, the broker advised.

The report suggests that organizations take a collaborative approach to decision-making, coordinate protest security with local law enforcement, review potential violations of free speech rights with counsel, and be aware of potential claims of retaliation or lack of due process.

Gallagher also recommends that organizations conduct a risk assessment, review and update their emergency response plan, develop a business continuity plan, and learn from past incidents to manage potential risks.

“When an organization experiences a protest, whether it’s against their operations or simply occurring on their premises, leadership must identify strategies to respond and de-escalate,” the report advises.

Read the full report on Gallagher’s website. &