Sep 02, 2021

Why Crisis Perils Coverages Are Gaining Ground

We see reports of mass shootings, cyberattacks and other high-impact events on the news every day. Although it can be hard to imagine these crises ever impacting our own workplaces, the reality is that we all need to be prepared. Crisis perils coverages are helping organizations manage their risks.

Workplace Violence

The National Safety Council says that assault is the fourth leading cause of workplace deaths. In 2018, assaults resulted in 20,790 injuries and 453 deaths. Although workplace violence can impact any industry, certain industries – including healthcare, education and service providers – are especially at risk.

School shootings and other mass shootings have increased over the last two decades. According to the FBI, there was only one active shooter incident in the U.S. in 2000. In 2018, the U.S experienced 27 active shooter incidents. Between 2000 and 2018, there were a total of 277 active shooter incidents, resulting in a total of 884 deaths and 1,546 non-fatal injuries.

Workplace violence insurance provides coverage for that costs that an organization may face after an active shooter or other violent incident.


Few things are more frightening that the threat of abduction. When employees travel the world, often bringing their families with them, they face this danger.  According to Vanguard Media Limited,  720 people have been kidnapped in Nigeria so far this year, and more than $18 million was paid in ransom between June 2011 and March 2020 – and that’s just one country. CNBC says that the business of kidnapping, ransom and extortion is a multibillion-dollar industry, and increased economic and political instability have made the situation worse.

Kidnap, Ransom and Extortion Insurance helps facilitate the safe return of the abducted employee by working with law enforcement agencies, managing negotiations and arranging for the delivery of ransom funds. This is a very specialized insurance program that provides the insured with an experienced partner during this traumatic event.


Ransomware and other cyberattacks have skyrocketed. According to the FBI’s 2020 Internet Crime Report, there were 791,790 complaints of cybercrime in 2020, with total losses of $4.2 billion. This is a big increase from 2019, when there were 467,361 complaints.

Businesses of all sizes and in all industries are vulnerable to this growing threat. At the same time, new legislation means that organizations must comply with strict data breach reporting requirements.

Cyber insurance can provide coverage for fines, data recovery expenses, business interruption losses, computer system extortion, public relations, crisis management and more.

Are Your Clients Prepared?

While these threats may seem unlikely, they represent real exposures in today’s business world – especially for companies that store confidential data, operate globally, serve the general public or have employees who travel. In other words, almost all companies face at least a few crisis perils.

Educate your clients, and let them know that coverages are available to address exposures in the areas of:

  • Cyber
  • Kidnap, Ransom & Extortion
  • Active Assailant
  • Workplace Violence
  • Political Risk

At Tangram, we understand that crisis perils coverage is increasingly important for brokers and their clients. We can help you source and structure coverage to address your clients’ unique exposures