Workplace Violence Leads to Higher Insurance Costs, Damaged Reputation

July 24, 2014

Workplace violence has unfortunately become a growing trend in many industries across the U.S., including high-risk professions such as health care. Given the large amount of potential hazards on the job, it is vital that employers find ways to reduce the number of incidents in order to protect staff members, decrease insurance costs and ensure a stable reputation.

Thankfully, however, there are many unique strategies that a company can employ to reduce the risk related to workplace violence. Recently, a panel of experts gathered at Business Insurance's 2014 Risk Management Summit in New York, and discussed at length this topic and preventative measures. With that in mind, employers should take proactive steps to better ensure a safe, collaborative work environment.

Most violent incidents are preventable
With an effective risk management plan established, nearly all incidents of workplace violence can be prevented. This is one of the key takeaways from Business Insurance's 2014 Risk Management Summit.

Of note was the financial impact that comes from an increase in violence, Business Insurance reported. Expenses following an incident can include customer and employee injuries, loss of life and a damaged reputation. In addition, there is a common misconception that the greatest risk comes from workplace shootings. In reality, there are often more cases of assault, although these tend to get less coverage in the media. Employers could be held liable for injuries, which might impact workers compensation or property and casualty insurance.

"When we read post-incident reports, most of the post-incident reports make it very clear that most of these incidents were preventable," Rick Shaw, CEO of Nebraska-based Awareity Inc., said at the summit, according to the news source. He added that indicators of a forthcoming incident appeared in nearly all cases, but those within an organization didn't recognize these risks or share the information with the appropriate parties. 

Essentially, a lack of risk management plan that includes the danger of workplace violence could expose a company to financial loss or employee injury. Therefore, more should be done to protect businesses from these hazards at all times.

Increase employee awareness
One of the best ways to prevent violence at a workplace is to increase employee awareness of these potential hazards. This can be achieved with clear goals, motivated management and a dedication to a risk management plan.

According to the U.S. Occupational Safety and Health Administration, risk factors in a work environment can include prevalence of handguns, the availability of money, low staff levels at certain times during the day and lack of training, among others. In order to prevent problems from arising, companies should create a comprehensive program that addresses these issues. For starters, there should be a zero tolerance policy for any violence, verbal threats or non-verbal threats directed toward an employee. This is especially serious if it comes from a fellow coworker. All staff members should also be encouraged to come forward quickly and report anything out of the ordinary.

Above all else, employees and managers have to be committed to reduce incidents of workplace violence, OSHA explained. A risk management plan can be crafted following an in-depth worksite analysis. Then, prevention can take place, including safety and health training. The important element here is that the entire company is on board with eliminating potentially violent encounters and other dangerous behavior. Anyone who is against these measures could limit the policy's effectiveness throughout the organization. Any positive steps forward should be met with support and encouragement, and any incidents should be immediately reported and documented for future assessment.

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