Safeguarding Your Organization Against Civil Unrest Risks

Election cycles, anti-war protests, and other forms of social disruption can elevate concerns about civil unrest, as protests and demonstrations have the potential to disrupt operations, impact an organization’s reputation, and harm relationships with stakeholders. A single protest can affect safety, lead to injuries, and cause property damage.

The Rising Costs of Civil Unrest

The financial risks of civil unrest—such as strikes, riots, and violence—are significant. Recent incidents have led to roughly $13 billion in economic and insured losses across seven major events.

Global conditions are also contributing to an increase in unrest, with an estimated 30,376 incidents worldwide in 2023, up from 29,535 in 2022. New protests have occurred across 83 countries. The uptick in election-related threats is particularly concerning as over 60 countries will hold elections this year, and approximately 70% of business leaders are worried about civil unrest affecting their operations.

The HUB Approach

Organizations need to proactively protect their workforce, assets, and business functions from civil unrest. Establishing a robust crisis response plan, backed by effective risk management and insurance, is essential for minimizing potential losses.

When developing or updating a civil unrest risk management strategy, consider these factors:

• Vulnerable Organizations: Certain organizations, particularly those with younger demographics, may be more susceptible to unrest. Universities, for instance, often attract peaceful activism but may experience widespread demonstrations that disrupt operations. Similarly, businesses in urban centers, government facilities, healthcare sites, and public transportation hubs are vulnerable. Large venues for events, sports, and conventions should review and refine their protocols to ensure swift mobilization if needed.
• Insurance Gaps and Coverage Needs: Insurance policies vary in how they address civil unrest-related losses, including property damage, bodily injury, and business interruption. For example, traditional property insurance may not cover damages from riots, while general liability insurance might exclude claims involving psychological injuries unless there is bodily harm. Violent acts liability insurance can help bridge these gaps by offering specialized coverage and crisis support. Reviewing policy details, including limits and exclusions, is a critical step.
• Preparation and Response: Effective civil unrest planning includes basic but crucial security measures, such as:
  • Surveillance systems with alarms and cameras
  • Mechanisms to secure and limit access to buildings rapidly
  • Communication protocols that link the organization’s staff with local law enforcement

• Supporting Employees: In uncertain times, employees may feel unsafe or stressed. Organizations can foster a secure environment by:
  • Promoting available resources, such as Employee Assistance Programs (EAPs) or third-party counseling
  • Encouraging leadership collaboration across departments (risk, legal, operations, HR) to guide workplace policies around sensitive discussions on current events
  • Creating forums for open, constructive dialogue to build mutual understanding and respect among employees
  • Engaging conflict mediation experts to offer training or resources to manage challenging situations

Collaborating with an insurance broker and external crisis response experts can enhance your organization’s preparedness, offering access to specialized security support and mental health services while addressing any reputational risks.