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Recent Apparent Suicides Highlight Need for Post-Violence Recovery Plans

Three apparent suicides that occurred in late March reaffirmed the need for post-incident plans that address long-term trauma in the aftermath of workplace violence and mass shootings.

All three decedents had either survived a school shooting or had been related to a victim. Two youths who survived the Marjory Stoneman Douglas High School shooting in Parkland, Florida died by apparent suicide just 13 months after a former student killed 17 and injured several more. Shortly after, it was reported that the father of a child killed in the 2012 Sandy Hook Massacre–in which a gunman killed 26 children and adults in a Connecticut elementary school–allegedly died by suicide.

As of March 31, 2019, the Gun Violence Archive confirmed 68 mass shootings for the year, and with statistics sure to rise, companies and institutions should be mindful of the delayed effects of workplace violence. Risk Management Monitor previously reported the number of suicides in the United States has risen in nearly every state between 1999 and 2016. Employers may use these tragedies to reconsider their own prevention and awareness efforts, and ways they can productively contribute to the dialogue and keep their workers safe.

Paul Marshall, managing director of Active Shooter and Workplace Violence at McGowan Program Administrators said post-incident trauma counseling is critical when it comes to preventing or reducing long-term effects.

“The trauma counseling for the mental anguish needs to be aggressively pushed, almost like the way post-traumatic stress disorder is for first responders,” Marshall said.

Counseling for physical and non-physical injury survivors and witnesses is something that could be missed when drafting a premises or employer liability policies, he said. In fact, Risk Management magazine reported that companies may not be aware of potential gaps in their coverage or that the limits of their coverage, when considering active shooter incidents, are insufficient.

Marshall said that instead of a duty to defend when it comes to a commercial general liability policy, insurers can address long-term trauma with a duty of care clause. This, he said, demonstrates an employer’s willingness to help victims from the outset.

“There’s a typically a year limit on these policies – in the insurance industry you need to apply some sort of time limit,” Marshall said. “But it’s still a year longer than you’d otherwise get. And there has been a huge uptick in these policies from a year ago.”

#BeThe1To is the National Suicide Prevention Lifeline’s campaign to empower people to help those in crisis.

How Employers Can Help

Addressing post-incident trauma in an insurance policy is important, but equally paramount is the need to ensure that employers make training available for affected employees – regardless of where the incident occurred. Regina Phelps, president of Emergency Management & Safety Solutions, said that post-incident crisis management protocols should be added to workplace violence preparedness plans. Therapy and grief counseling are critical details of those protocols.

“Always give co-workers the option of attending any funeral or memorial service for the victims,” Phelps said. “Be aware of employees’ feelings of guilt – some might feel that they could have done something to stop the suicide or perhaps the victim told them of their plans, and they dismissed the comments. Incidents like that will make co-workers feel like it is their fault. Engage your employee assistance program [EAP] to provide education and training about the suicide threat and the complexities of the situation. If appropriate, support employees who start a tribute or fund to support the worker’s family.”

Phelps said that regular post-incident training can be just as crucial as prevention.

“It is essential to conduct regular exercises with the individuals responsible for the plan and its implementation. This could include the organization’s crisis management team as well as key departments such as human resources, security, facilities and communications,” Phelps said. “Plans are written in a vacuum. During most incidents, plans are not pulled out and people instead operate on muscle memory.  Exercises are the best way to ensure that the muscle memory will be helpful.”

Finally, Phelps stressed that employers communicate that their EAPs are typically available to employees’ families as well.

“Providing mental health services to employees and their families is essential,” she said. “The incident will affect not only the employee but their families. Ensure that counseling services are very convenient – offering an option at work, off-site as well as virtually is essential to make sure that employees get the help that they need. It is also critical to provide these same services to their immediate family.”

For more about active shooter preparedness, RIMS members can access a new professional report, “Active Shooter Preparedness and Your Organization.” To download the report, visit RIMS Risk Knowledge library at www.RIMS.org/RiskKnowledge.

If you or someone you know might be at risk of suicide, here’s how to get help: In the United States, call the National Suicide Prevention Lifeline at 1-800-273-8255. The International Association for Suicide Prevention and Befrienders Worldwide also can provide contact information for crisis centers around the world.

Four Reasons To Stay The Course With Captives

As the overall insurance market remains in a “soft” environment with rates generally decreasing, particularly in the workers compensation market, many captive participants might be questioning if now is the time to exit their captives and explore more traditional insurance options.

While this is an understandable response, one of the main reasons for creating your own or joining a group captive is a long-term commitment to a strategy of retaining risk in order to reduce costs over time.

Many companies historically turned to captives when insurance rates were high because they offered:

  • better control over claims handling and loss control efforts,
  • insulation from the cyclical swings and uncertainties of the commercial insurance marketplace, and
  • lower operating costs than conventional insurance models.

Additionally, there is a far greater return on loss-prevention and claim-mitigation investments. Though rates are currently dropping, here are four reasons why most business owners would still benefit from remaining with their captives.

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1. The Privileges Of Membership
Those companies that qualify are afforded benefits, including the possibility of reduced premiums and recouped savings over time. Keep in mind, one of the biggest drivers of value in being part of a captive means being insulated from future negative fluctuations in the market. Try not to lose sight of this, especially when rates drop and seem enticing.

2. No “Take Backs”
Leaving a captive can be costly, and reentry is not guaranteed. Companies considering the idea of leapfrogging from their captives while rates are low and then jumping back in when the rates increase may face hefty repercussions. This is particularly true for companies that are members of group captives, when it’s possible that other members of the captive may not accept them back, particularly if they were saddled with absorbing the exiting member’s share of losses.

3. Preparing For That Rainy Day
If you jump ship from your captive, you will most likely have lingering financial obligations if losses deteriorate for the whole group, and you could be on the hook for an assessment. By remaining a captive member, even if you are paying more in premium, you are adding money to cover a possible deficiency from prior years. If actual losses turn out to be better than projected, you can recoup—via dividends or reduced future premiums—a greater percentage of those savings than you could from traditional insurers.

4. Control Your Destiny
The market forces that are creating lower rates right now—such as decreasing medical costs or legislative changes that result in lower workers compensation costs—are also positively affecting captives. By staying with your captive, you can enjoy the upside of improvements in claims as your own losses go down, resulting in lower future costs and the possibility of recouping additional profits.

Overall, captives provide more control than traditional insurers through greater return on loss-prevention and claim-mitigation investments and through access to higher savings. Cheaper market rates can create an understandable knee-jerk reaction that may cause you to consider leaving your captive but remember your initial motives for joining. Captives are great alternatives to traditional insurer solutions, and staying the course will most likely work in your favor.

Do You Speak Digital?

It has been proven time and time again that communication is a pivotal and essential cornerstone of business and individual professional success. Throughout business, whether in presentations to the board or chatting with co-workers around the Nespresso machine, communication can make or break a relationship. Often, the key to building that relationship is making an effort to learn another discipline’s language.

Today, no matter what industry your company may be in, executives are increasingly focusing on the technological advances that can help achieve a competitive advantage. And just as the insurance industry has its own unique language (and a plethora of acronyms—don’t get me started on that), so too does the digital world. If risk managers want to continue rising in the executive ranks, we will need to get on the same page as the technological innovators changing our world. That means learning to speak digital.

You don’t have to be a developer or coder to have a tech-based discussion. But, you do need to make the effort to understand some key terms and concepts in order to successfully communicate, particularly within your organization.

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You can start simply—find a colleague in your IT group to help bridge the language gap. It can not only help you understand the tech world, but it can also allow others to better understand yours.

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Call it a beneficial opportunity for mutual mentoring.

In my own experience over the past year working with insurtech start-ups, I have found the tech community to be extremely open and receptive, regardless of whether you are speaking with the CEO, co-founder, data scientist or developer.

It can be daunting at first. When I was first asked to review wireframes (website structural plans) or user story mapping (outlines of website visitor behavior) or when they said they’ll “Slack me” (contact me via the popular messaging and file-sharing app Slack), I have to admit, there was a bit of Googling involved. But, what I have found is that they are just as eager to learn about the risk management world as much as they are to impart knowledge and understanding about the technology ecosystem.

If you are still somewhat intimidated about diving into the deep end at the office, get your feet wet by starting small. Read an article on a technology that may resonate with your company’s strategy, current business plan or operational initiative. Attend an industry event that has insurtech or risktech (or whatever-tech) on the agenda. There are events in every geographical jurisdiction from formalized conferences to social meet-ups. If you can’t find one in your backyard, webinars and podcasts are also great resources.

No matter what, it is important to take that first step. It may be scary or uncomfortable, but that’s a good thing.

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You will soon find yourself wading outside of your comfort zone, which means you will be growing professionally and will be on your way to learning that new language.

Infographic: 16 Blockchain Disruptions

Underpinning the heart of digital currencies, blockchain has graduated from being merely a buzzword to revolutionizing how companies conduct business. Services and products that are powered by blockchain pose financial and operational risks that can challenge traditional models. With new cryptocurrencies popping up regularly and law firms creating practice groups around it, blockchain is bound to impact your industry.

If you need a quick primer on the topic ahead of the many blockchain education sessions at the RIMS 2019 annual conference, the folks at Bitfortune have created the voluminous infographic below to help you understand how the technology will improve 16 different industries, from music to government.

Explore how blockchain goes beyond Bitcoin and real-world applications that affect you and your organization.

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Discover ways that blockchain increases transparency and could potentially benefit your organization’s overall resilience.

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