Workplace Violence Expense Insurance

As of July 1, 2024, senate Bill SB 553 became effective and this affects nearly all business owners in California. SB 553 requires the implementation of a workplace violence plan.

Our previous blog outlined SB 553 and some resources that are available for business owners. You can read it here.  Cal/OSHA also has a website with available resources.

Workplace Violence Expense Insurance

While not part of SB 553, employers are increasingly beginning to protect their employees and their businesses by obtaining insurance for workplace violence expenses. Incidents of violence have wide and devastating impacts on businesses and their employees.

With violent incidents on the rise, the threat faced by employees and employers is growing.  The majority of the perpetrators had a link to either the location and/or an employee or owner at that location. Threats can be from past and present employees, or an outside person but no matter what the impact is widespread and the monetary losses can be huge.

Types of Workplace Violence

Different types of violence can occur in the workplace.

• Criminal Intent – This is violence that stems from criminal activity, such as robbery and assault.
• Coworker Violence – This is violence stemming from a current or past employee of the company.
• Client/Customer Violence – This is violence that is perpetrated by clients or customers of the business.
• Personal Relationships – Domestic disputes, either a current or past relationship partner of an employee or owner can be the cause of violence in the workplace.

Types of Workplace Violence Expenses

What kind of expenses are typically covered by this type of policy? While coverage varies by carrier, typical covered expenses are:

• Public Relations expenses
• Independent Crisis Management Consultants
• Medical, Dental, Cosmetic, and Mental Health expenses for employees who were victims of workplace violence
• Independent Security Guards
• Rewards
• Salaries for victims and replacement workers
• Business Interruption
• Rest and Rehabilitation Expenses
• Threat of Violence Expenses
• Crisis Legal Costs
• Burial Expenses
• Occupational Training for employees who were victims

The Benefits of A Workplace Violence Policy

Without the benefit of an insurance policy, all workplace violence costs and expenses are the responsibility of the business owner. Having a policy protects your business, provides valuable resources, and covers the expenses that your employees will need.

At Fixated Financial and Insurance Solutions, we have multiple carriers who can assist with affordable Workplace Violence policies.  We can quote as a stand-alone policy or as part of a Business Management policy, along with Crime, Cyber, Employment Practices Liability, and Directors and Officers coverage.