Mike Williams, Crisis Management Divisional Director, discusses the evolving and growing threats to employees and how Hiscox’s new Personnel Security Plus (PSP) product further complements Hiscox’s existing Kidnap and Ransom insurance to meet employers’ duty of care when it comes to safeguarding employees.
How has the global security threat landscape changed, and what does this mean for businesses?
The world has become more divided and complicated in the last few years, with many regions facing geopolitical unrest. In addition to high-profile conflicts, there are many other areas of political instability, attempted coups d'états, and civil unrest in many parts of the world. Along with this global political uncertainty, the risk of terrorism in the western world should not be underestimated. Moreover, populist politics is creating divisions in parts of Europe and North America that would normally be expected to be free of risk to businesses and their employees. Ultimately, this means that employers cannot afford to ignore the potential risks to their employees that come from instability and an uncertain security environment.
What are the implications for employers of failing to manage these risks to employees?
Every employer has a duty of care towards their employees to ensure their safety and well-being. Employers must, as a minimum, meet their legal requirements according to each local jurisdiction they operate in to keep their employees safe. Going beyond the minimum, however, is an important part of meeting every employee’s expectation that they will be kept safe at work and have the confidence to focus on their work performance, rather than be concerned about their safety.
Employers need to show that they are taking steps to safeguard their employees to the best of their ability, not just because it is the right thing to do as an employer, but also to protect themselves from legal liability and ensure they can deliver business continuity in the event of a security incident occurring on their premises or against one or more of their employees. This is where it is vital for an organisation to have access to independent expert advice to make sure the correct decisions are taken in a crisis.
How does PSP interact with Kidnap and Ransom cover?
PSP is a great complement to a Hiscox Kidnap and Ransom policy given the broader set of insured events that is then covered. Hiscox has been protecting businesses’ employees for 30 years, and we care about keeping pace with the changing risk landscape, so PSP is a natural next step in our work to help companies keep their employees safe.
The policy responds to 22 different perils including workplace violence, cyber stalking, bribery, abduction, and social engineering, providing HR and security managers with a new tool that they can use in managing risks that directly affect their employees. Access to global specialist risk consultants, Control Risks, during crisis incidents means much-needed expert support is quickly available, backed up by the claims know-how and risk mitigation experience of Hiscox.
PSP offers a focused approach to people risk, providing mid-sized businesses with a breadth of cover that aligns with their specific needs. Unlike the Security Incident Response (SIR) product, which encompasses a wider range of risks, PSP homes in on the essentials to deliver a more tailored and accessible solution for these organisations.
How will the policy respond to an incident affecting employees?
The policy provides round-the-clock access to Control Risks on an exclusive basis for up to 30 days when an incident has happened or is about to happen. It is a tried and tested response mechanism and has already responded to over 200 incidents already covered under a Hiscox SIR policy.
Under the policy, the objectives include assessing the nature of an insured event and its potential impact on the safety of an insured person, the insured’s business operations and/or the insured’s reputation; avoiding or otherwise mitigating the impact of an insured event; maintaining and/or resuming normal business operations during and/or immediately following an insured event; and the provision of relevant post-incident recovery support and advice, but only to the extent needed to restore business operations and activities to their level immediately before the insured event (and within the 30 day limit of the policy).
Control Risks consultants will act as independent experts providing critical support and advice to minimise the impact of an acute crisis, safeguard employees, and help get the business back up and running.
Is it a policy extension suitable only for businesses based or operating in high-risk countries?
Kidnap and Ransom cover has always been focused on providing support for low frequency/high impact events in generally higher risk countries, but PSP broadens this offering to (a) crisis issues not covered under a traditional kidnap and ransom policy and (b) crisis issues that may also happen in typically lower risk territories. That could mean, for example, workplace violence events in the USA or stalking incidents in France. It does of course also cover the potentially more volatile political issues such as civil commotion issues in North America.
How can I find out more about PSP?
Speak to your insurance broker or contact one of our specialist underwriters www.hiscoxlondonmarket.com.
