Election season, antiwar protests and other sources of social upheaval create understandable concerns about the possibility of civil unrest during protests and demonstrations. It only takes one protest to impact an organization’s operations, reputation and relationship with stakeholders, as well as injure people and damage property.

The rising cost of civil unrest

The financial risk associated with civil unrest, including strikes, riots and other violent acts, is significant. Seven incidents of civil unrest in recent years resulted in economic and insured losses of approximately $13 billion.1

Global economic and societal conditions are also fueling civil unrest worldwide, with a reported 30,376 incidents in 2023 as compared to 29,535 in 2022,2 with new protests taking place in 83 countries.3

Evolving election-related threats are a concern as more than 60 countries hold elections this year. And about 70% of business leaders have expressed concern about the potential impact of civil unrest associated with political instability on their operations.4

The HUB EDGE

Organizations must actively protect their people, properties and their business operations from civil unrest by creating crisis response plans that are ready to implement at a moment’s notice. A strong risk management plan, the right insurance and the right response partners all play a critical role in mitigating or preventing losses.

When establishing or refreshing your organization’s civil unrest risk management strategy, consider the following:

  • Organizational vulnerability. Some organizations are fertile ground for unrest, so planning in those environments may require extra care. With a large, young community, academic institutions are particularly vulnerable to unrest. About 40% of those attending protests in recent years were younger than 30.5

    Colleges and universities are also hubs of peaceful activism and freedom of expression, but widespread demonstrations can make higher education vulnerable to disruption. Other organizations and sites are vulnerable as well, including office buildings and retail businesses in city centers, government buildings, healthcare facilities and public transportation or other infrastructure. Large-scale entertainment, sports and convention venues also need to review processes and protocols carefully and be prepared for immediate mobilization.
  • Policy differences and coverage gaps. Insurance policies may respond differently to property damage, bodily injury, business interruption or other claims arising from civil unrest. For example, traditional property policies may exclude damages caused by riots or civil commotion; a general liability policy may not cover claims for personal injuries or damage to third-party property if the organization did not meet the required standard of care. Most general liability policies do not provide affirmative coverage for post-traumatic stress or psychological injuries unless the claimant also sustained bodily injury.

    In addition, limits may also be insufficient to cover all losses incurred. Policies such as violent acts liability insurance can fill these types of coverage gaps, providing crisis response and risk management assistance as well. Understanding your policies’ coverage, limits and exclusions is a critical component of your organization’s plan.
  • Preparation and response. Organizations need strong safety and security measures before incidents of civil unrest arise. At a minimum, these should include three essentials:
    • Security systems with alarms and cameras
    • The ability to secure and restrict access to buildings quickly
    • Communication and incident response protocols between the organization’s staff and local law enforcement
  • Taking care of your people. In times of uncertainty, employees may be on edge or may feel unsafe in their work environment. Consider the following to help create a safe space for employees:
    • Reinforce available resources like Employee Assistance Programs (EAPs), or consider adding coverage for third-party counseling options
    • Bring key department leaders from risk, legal, operations and HR together to outline company policies around talking about sensitive current events in the workplace (politics, social issues, mass casualty events or other threats)
    • Provide a forum for employees to have open and constructive dialogue leading to a mutual understanding of differing opinions
    • Engage outside experts in conflict mediation to offer training or resources to help employees productively and safely diffuse difficult situations

Organizations should work closely with their insurance broker to build an effective response plan with access to outside security resources and other crisis response specialists who can help with loss recovery, provide mental health services and address reputational damage that may occur.

1 Allianz, “Managing the increasing threat of political violence and civil unrest,” April 2024.
2 Chaucer Group, Cost of living crisis fuels increase in global civil unrest, June 19, 2023.
3 CarnegieEndowment.org, “Protests in 2023: Widespread Citizen Anger Continues, With Sources Multiplying,” December 18, 2023.
4 Beazley, “Geopolitical Risk Snapshot 2024,” January 15, 2024.
5 Pew Research Center, “Recent protest attendees are more racially and ethnically diverse, younger than Americans overall,” June 24, 2020.