Almost one in ten (9pc) UK-based companies fail to insure their employees and other critical company assets when they are deployed abroad, according to research by ArmorGroup International plc.Almost one in ten (9pc) UK-based companies fail to insure their employees and other critical company assets when they are deployed abroad, according to research by ArmorGroup International plc.
The provider of security and training adds that the majority of these companies do not provide insurance cover abroad, with only a fraction doing so in high risk regions.
ArmorGroup warns senior company executives that this lack of adequate insurance cover is a glaring example of companies’ failure to properly address the critical issue of duty of care to their employees and could leave them open to litigation as a result. ArmorGroup believes that this failure is due in part to the fact that around one in five (19pc) companies has absolutely no risk management programme in place.
The security company believes that many firms are concerned at the prohibitive cost of providing comprehensive insurance for staff operating in more high risk regions. However, according to Aon Crisis Management, companies could reduce their premiums by demonstrating they have firstly understood their risk exposure and then established robust plans and procedures to manage these risks.
The increasingly global nature of business means that employees now regularly operate abroad, often in potentially hazardous regions. Should the worst happen, a company’s failure to take all reasonable precautions and an inadequate response to an incident will attract the censure of staff, their families, clients, shareholders, trades unions, other pressure groups and even the courts, says ArmorGroup.
Range of threats
Neil Young, Managing Director of ArmorGroup’s Risk Management Division, said: "UK workers can face a range of threats irrespective of whether they are employed in a country such as Iraq or a seemingly safe European state. It is the duty of employers to ensure that they receive the necessary training and support before being sent abroad and are given the right level of insurance and protection when they are there. Staff should be confident that they and their families will receive appropriate levels of care should the worst happen: in fact they should insist on it."
What they say
Justin Priestley, Executive Director, Aon Crisis Management, said: "Without adequate insurance cover companies could face problems repatriating employees or providing them with the best medical services in the event of an emergency. Companies with risk management programmes which offer staff pre-deployment training and if necessary, additional protective security services may see a reduction in their premiums."
The sectors least likely to insure staff or assets abroad are transport/storage and construction firms, with just a third doing so compared to manufacturing firms who tend to make adequate arrangements. In terms of their risk management procedures, almost a third (29pc) of construction firms, a quarter (25pc) of manufacturers and almost a quarter (24pc) of transport/storage companies do not have any programme in place.
ArmorGroup advises companies to conduct a risk assessment on the country they are deploying employees to before they are sent and to develop a programme to mitigate those risks before employees go. This means:
adapting recruitment processes for employees sent into potential danger zones, ensuring that they are physically and mentally suited to the task;
giving them relevant briefing and training before deployment; and
equipping them adequately once they are there.
The firm adds that companies should consider secure accommodation for employees and their families at a minimum and also look at offering close protection advisers or protective security details if the threat levels warrant them. ArmorGroup also recommends that companies have their own bespoke, independent and rehearsed contingency plans in place to respond to cases of employees’ injury, kidnap or death, which should include advising staff on local medical and diplomatic support.
This report follows a report published last year by ArmorGroup entitled "Duty of Care To Employees on Deployed Operations: An ArmorGroup Perspective" which analysed the issues companies need to address when deploying staff to hazardous countries and suggesting possible ways forward for companies and Government.
