Uncertain Times. Certain Coverage.
Riots, looting, violent attacks, terrorism and extortion are becoming ever present threats to businesses of all sizes.
From grocery stores to real estate offices, the threat is very real, but these businesses are rarely the direct target of physical damage.
What businesses should be considering is ‘non-damage’ business interruption and ‘denial of access’ to their premises for both employees and customers as a result of a security incident in their neighborhood. This is where we come in.
How we help our clients
Stats from R3 Continuum (R3 c). R3 c is an industry-leading, psychologically based crisis management firm providing preventative and response services to organizations, large or small. R3 c are also one of two approved responders for the Crisis Protect product in the event of an incident or claim.
The number of crisis events we respond to annually
violent events
Shootings
of employees have experienced workplace violence
Designed with Small Businesses in Mind
1 insurance policy. 20 security threats
Assault
While traveling to a client’s office in Houston, the Vice President of a Seattle-based architecture firm is assaulted and seriously injured.
Blackmail
The Chief Financial Officer of a department store in Baltimore received a phone call threatening to reveal personal information to the press unless the perpetrator received $7,000. The nature of the threat had the potential to cause significant reputational damage.
Civil Commotion
Civil Commotion – Rioting in Milwaukee is a concern for a sports store owner who is unable to access her premises to secure a large sportswear order scheduled for delivery to local high schools. If unable to access the premises and secure the order, the store could lose a significant investment, and the reputational impact on the business would possibly be irreparable.
Cyber Extortion
A hospital in St. Louis receives a message on their computer system informing them that their network has been infected by malware and perpetrators have seized control of the hospital’s computer systems. Control will only be given back to the hospital if $25,000 is paid to the perpetrators.
Deprivation
After individuals entered a small office in Cincinnati and severely vandalized workspaces, the area was deemed no longer fit for employees to work in.
Detention
The Sales Manager of a small Dallas electronics company is traveling to Mexico to meet with clients. He’s detained at a police checkpoint over the Mexico-US border for unknown reasons. He manages to call his office, which then escalates the problem to the Arthur J. Gallagher Crisis Resilience Solution response line.
Disappearance
The father of the Marketing Director of a San Francisco-based real estate company was vacationing in Tennessee. His family was growing concerned after he had failed to contact them.
Emergency Repatriation
Volunteers from a non-governmental organization (NGO) based in Washington, DC are working in South Sudan promoting clean water initiatives when hostilities between government and rebel forces flare in Juba. The team is stranded and unable to get any commercial flights back to the US.
Extortion
A local security technology company in Minneapolis wins a contract to install surveillance cameras in a large outlet village. Shortly after the contract is awarded, they’re contacted by an unknown individual informing them they will be required to pay a $5,000 “protection fee” to ensure the cameras operate continuously.
Hijack
A plane heading to Cairo from JFK Airport is hijacked. A company believes one of their Directors is on board.
Hostage Crisis
The Captain of a small freight transport vessel is assaulted and held hostage in Boston harbor while criminals steal his cargo. The offenders then take him in their vehicle where he’s later released at a remote gas station. He calls his office, which in turn reports the offense to local police.
Kidnap
While exploring investment opportunities in Honduras the President of a large New York retail group is kidnapped by an organized gang. A significant ransom is soon demanded.
Product Tampering
A meat packing warehouse in Kansas City is an important supplier to US supermarkets. They receive a threat that pieces of metal will be added to unspecified packages unless they cease supplying a particular store, whom the perpetrator claims is mistreating employees.
Radicalization
On October 31st 2017, Uzbek immigrant and permanent US resident Sayfullo Saipov killed at least eight people by driving his truck through a crowded bike lane. Saipov was not able to find stable work, he increasingly grew resentful, angry and ultimately depressed at which point he separated from his otherwise moderate U.S based community.
Sabotage
A construction company in Denver wins a contract to build a residential complex over a competitor. After the contract is awarded, company machinery critical to the project is sabotaged, putting the contract in jeopardy. The competitor is believed to be responsible.
Stalking
A Portland teacher, after being terminated from a school for intimidating behavior towards other faculty members, begins to stalk the school’s principal. She’s followed on multiple occasions and bricks are thrown through the windows of her home.
Threat
Gang members in Phoenix threaten a small business owner and her family with violence after an argument.
FAQs
WHAT IS A CRISIS DEFINED AS?
Crisis means any decisive, unstable or crucial time in the policyholder’s affairs or operations resulting from any insured event(s) that either:
- has directly caused a material disruption; or has the potential to cause:
- imminent damage to real property and/or property and/or threat thereof and/or financial loss; and/or
- the reporting of any insured event(s) in local, regional or national media including radio, television, newspaper or magazines which is likely to cause a material disruption to the policyholder and/or insured person(s)
- bodily injury and/or death or disablement to any insured person(s)
WHAT DOES THE COVER INCLUDE?
GCP Mini – fixed annual premium of $2k
- For clients with revenues less than $250m
- Excluded client types public sector / education
- Fixed indemnities
- 1st party $1m (up to 5 locations)
- 3rd party $100k
- Crisis Consultant costs $1m (limited to 25k for cyber extortion and product tamper)
GCP – bespoke underwriting
- For any client
- Flexible indemnity limits up to:
- 1st party $25m
- 3rd party (15% of first party limit)
- Crisis Consultant costs
- Unlimited for detention, disappearance, extortion, hijack, hostage crisis and kidnap
- $1m for act of terrorism, assault, blackmail, civil commotion, deprivation, emergency repatriation, employee dishonesty, radicalization, sabotage, stalking, threat and vicious attack
- Pre Incident Funds available up to 5% of premium
WHAT SERVICES ARE INCLUDED?
Crisis Consulting Support
Gallagher Crisis Protect is supported by a comprehensive crisis consultancy package that helps clients build resilience and helps address duty of care
In the event of an incident they have the support of world leading crisis consultants that are made available by calling one number
- NYA; https://nyarisk.com/
- R3 Continuum; https://r3c.com/
The solution supports clients during the 3 phases of a crisis; Pre Incident, During the Incident & Post Incident
HOW IS THIS POLICY BETTER THAN OTHER OPTIONS IN THE MARKETPLACE?
There are no similar policies in the marketplace that offer INDEMNITY and response coverage for as broad a range of insured events with as extensive a range of risk management services
ISN’T THIS ALREADY COVERED UNDER MOST BUSINESS INSURANCE PLANS?
The short answer is “No.” In order to obtain coverage for as broad a range of crises, many separate insurance policies would have to be purchased at a much higher cost to your business
DO SMALL BUSINESSES NEED THIS COVERAGE?
This Gallagher Crisis Protect mini product is designed with small businesses in mind. It enables access to crisis response consultants for a wide range of crises without having to buy multiple other products at a much greater cost e.g. Terrorism insurance, product recall cover, kidnap and ransom cover
WHAT IS THE COST OF NOT BUYING THE COVERAGE AND SELF-INSURING A CRISIS?
In the absence of this coverage you, as a business, may not know who to turn to in the event of a crisis to get 24/7 access to crisis consultants and your financial loss may not be indemnified
WHO IS THE INSURANCE CARRIER?
Lloyds of London and American International Group (AIG) UK Ltd
WHAT IS THE CLAIMS-HANDLING PROCESS?
Insureds have access to a 24-hour data hotline to report actual or even suspected incidents
WHAT FIRM PROVIDES THE CRISIS RESPONSE SERVICE?
In the event of an incident they have the support of world leading crisis consultants that are made available by calling one number
- NYA; https://nyarisk.com/
- R3 Continuum; https://r3c.com/
WHAT IF THERE ARE QUESTIONS THAT ARE NOT ANSWERED HERE?
You can call your preferred Gallagher Professional or contact us using the form at the bottom of the page
Want to get in touch?
250 Park Avenue New York, NY 10177
