Disorder, violence and criminal damage has spread across towns and cities including Liverpool, Rotherham, Middlesborough, Hull, Staffordshire and Plymouth over the last week, with potentially more expected to come. Aon’s Grant Foster, UK Risk Consulting Leader, AGRC, and David Price, UK Risk Control Director, AGRC, consider how violent disruptions could impact affected businesses in these areas, and explore how these incidents have brought into focus the potential implications for both people and property.
What measures should be taken to protect your people?
Beyond safeguarding against the immediate risk faced by people in affected areas, organisations should look to communicate the availability of wellbeing support for employees. The psychological impact of civil unrest can be significant and there may be employees who live and work within these areas of unrest who are fearful, anxious or traumatised by these events. Benefits can be a useful tool in providing the support these individuals need to manage their mental and emotional health such as an Employee Assistance Programme or access to specialist debrief, support and counselling services post-incident. Mental Health First Aiders are also trained to provide first aid support following traumatic events and signpost to further help and resources.
Employee benefits programmes are likely to be affected by the current unrest; medical and personal accident policies commonly have exclusions relating to riots, war and terrorism, however little impact has been seen so far on group life, income protection, critical illness and travel policies.
“Companies that have a high street presence should be looking closely at business continuity and the safety of their people.”
Grant Foster, UK Risk Consulting Leader, AGRC
Are current risk assessments fit for the heightened risk landscape?
In light of the growing immediate risk presented by instances of violent disorder, businesses will be questioning whether their current risk assessments are equipped to deal with this threat. The first points to consider are the location and type of occupancy when determining if there is any increased risk. As we have seen, businesses do not need to be the primary targets of unrest to be the victims of criminal damage.
“If disruption is expected in the area, businesses should determine whether any additional precautions are needed to protect people and property. Police may need to be contacted in some cases, and any agreed precautions communicated to employees and those visiting their premises. Additional site security – including physical security and heightened perimeter protection – may become priorities for those at risk. Access to buildings should also be considered, and potential exit routes outlined ahead of disruption.”
David Price, UK Risk Control Director, AGRC
How should businesses approach claims?
Any damage or loss must be reported to the Police without delay. As there may be strict requirements for notifying insurers of any loss, those that are affected should be proactive and talk to your usual broking contact as soon as possible. The deadline for reporting will be stated in the policy; in many cases, this can be as short as 7 days from the event, though businesses should check their policies to confirm the correct notice period.
Follow any claims procedure requirements contained in your insurance policy and be sure to keep evidence of loss including receipts, purchase invoices, financial records and photographic evidence.
If riot is determined by the Police and Crime Commissioners, businesses may be eligible for compensation under the Riot Compensation Act 2016 (in England and Wales) for damaged or stolen property that is not insured, or is underinsured or not fully covered.
What is likely to be covered under policies?
It is not clear yet as to how damage caused will be classified, whether terrorism, riot or something else, and each claim’s circumstances will be considered individually by insurers. Ultimately the terms, conditions and scope of your own policy will determine any policy response. This could include whether optional terrorism insurance has been purchased – if events are ultimately deemed terrorism.
How can businesses communicate on the topic of violent disorder?
Particular care should be exercised around the communication of recent events with employees and the wider public. In the case of a politically charged and tense atmosphere, deliberate use of language is an important consideration. Government officials have largely refrained from framing the current unrest as ‘riots’ or ‘terrorism’, instead referring to ‘disorder’, ‘thuggery’, and ‘violence’.
While care has been taken in the production of this document, Aon does not warrant, represent or guarantee the accuracy, adequacy, completeness or fitness for any purpose of the document or any part of it and can accept no liability for any loss incurred in any way by any person who may rely on it. Any recipient shall be responsible for the use to which it puts this document. This document has been compiled using information available to us up to its date of publication (7 August 2024) and is subject to any qualifications made in the document.