By: Richard Ollis

The recent San Bernardino, California shooting incident is a startling reminder of the escalating violence at businesses. Fourteen deaths and a $58 million lawsuit are just the beginning of the reaction to this event. Workplace violence is now something all businesses should assess and have a plan to address.  According to the Bureau of Labor Statistics, there were 13,827 workplace homicide victims from 1992 to 2010 – about two per day. Over 1,500 nonviolent crimes occurred every day at workplaces in 2009, according to the Bureau of Justice. Unfortunately, these alarming statistics are likely to increase; however, most businesses don’t have a proactive plan on how to prevent or address such an incident.

Workplace violence is defined as an act or threat of physical violence, harassment, intimidation or other threatening disruptive behavior that occurs at the worksite.

Reported cases of workplace violence continue to rise. The Occupational Safety and Health Administration now averages over 2 million reported cases of violence each year. It’s estimated that businesses in the United States have an economic cost of over $170 billion as a result of workplace violence. The statistics are staggering, and the problem continues to get worse.

Businesses, managers and employees need to be trained about how to recognize early stages of behavior that may lead to some types of workplace violence.  Changes in behavior to be aware of include excessive tardiness or absence, reduced productivity, strained workplace relationships, changes in health/hygiene, fascination with weapons, substance abuse, excuses and blaming, and/or depression. Knowing your co-workers and being able to identify changes in their behavior enables a business to provide early intervention. Establishing reporting procedures for employees and supervisors also helps with early detection.

Several other techniques have proven successful in establishing standards around behavior, such as conducting background checks. When hiring new employees, review information to determine if the employee has a history of violence or threats. Adopt a zero-tolerance policy for any type of violence, including verbal abuse or harassment. This type of behavior should be immediately addressed with disciplinary consequences, possibly including termination. The zero-tolerance policy should be spelled out during employee orientation, in the employee handbook and during ongoing training. Creating a process for reporting and monitoring employees displaying dangerous or suspect behaviors is also important. This includes monitoring emails, phone calls and other activities where appropriate. When an employee is terminated, make sure they surrender keys and security badges, and that their passwords are changed immediately.

Physical security and safeguards are another essential factor. This includes locking appropriate doors, analyzing security procedures and developing consistent standards. Employers may be sued for negligence if they were aware of but did not address a potentially dangerous situation. Creating a safe environment is a critical part of an employer’s responsibility.

A new case on workplace violence in Missouri demonstrates the practical and legal challenges many employers face in today’s environment. On Nov. 20, 2012, an employee was shot by her estranged boyfriend as she walked to her vehicle in the work parking lot. Due to previous criminal activity in and around the parking lot, a Jackson County jury awarded a $3.25 million judgment against the employer. Another factor in the judgment was that the employee had reported concerns about her boyfriend to human resources prior to the incident.

Although some insurance coverage may respond to workplace violence incidents, many expenses are not included under standard general liability, property or workers’ compensation policies. Costs such as security, public relations, counseling and injured non-employee expenses are normally not covered. Specialty insurance (Workplace Violence Expense) policies are now available to protect companies, their directors and officers, employees and guests. Items typically covered include loss of income, crisis management, death benefits and other related expenses associated with a workplace violence incident.

All businesses should assess their risk, develop a plan, provide ongoing training, practice their plan and determine if additional insurance is appropriate. Our world is changing; be proactive in approaching this emerging risk.

Richard Ollis is CEO of Ollis/Akers/Arney, an employee owned business and insurance advisory firm.

This article appeared in the March 12, 2016 edition of the News-Leader and can be accessed online here.