Severe Thunderstorm Classification
Thunderstorms are classified as “severe” when they produce one or more of the following:
Severe thunderstorms are volatile weather systems that can result in serious damage to business and residential infrastructure. Depending on the strength and weather conditions a thunderstorm produces, prolonged disruptions to transportation and utility networks and business operations are possible. Frequent lightning, strong straight-line winds, flooding downpours, and hail are common during the passage of a severe thunderstorm.
Depending on atmospheric conditions, severe storms could also spawn destructive tornadoes. A tornado typically consists of a funnel-shaped cloud that reaches the ground. Winds associated with a tornado can exceed 322 kph (200 mph). Damage paths can be greater than 1.6 km (one mile) wide and 80 km (50 miles) long.
Business Continuity for Severe Thunderstorms
It is important to know how to effectively prepare for a severe weather event in order to protect life and property and ensure business resiliency following the passage of a storm. This includes conducting a severe thunderstorm hazard assessment ahead of time, categorizing all business assets, developing a severe thunderstorm risk assessment, and practicing site-specific emergency management plans.
Severe Thunderstorm Hazard Assessment
Understand the potential impacts on business operations by conducting a severe thunderstorm hazard assessment ahead of the storm. To do so, list what types of damage may be possible during the passage of a thunderstorm, ensuring all aspects of a storm are considered (hail, flooding, damaging winds, lightning, etc.). Assess the possibility of prolonged disruptions that might continue in the days following a severe thunderstorm (protracted power outages, supply chain disruptions, etc.).
Categorize all business assets that could potentially be exposed to severe thunderstorm activity and assess their degree of vulnerability. Note that thunderstorms (especially those that produce tornadoes) may cause direct losses to physical assets, indirect losses to business function (e.g., loss of production during recovery efforts), and intangible market losses (e.g., missed opportunity to sell to new buyers).
Severe Thunderstorm Risk Assessment
Develop a comprehensive severe thunderstorm risk assessment for your company that speaks to the vulnerability of exposed assets and outlines what are considered tolerable or unacceptable risks.
Use this information to perform a cost-benefit analysis to determine what mitigation measures would be best suited for your company, as well as what options are available to you to ensure business continuity during and after the passage of a storm. The two following tactics can support your risk assessment:
Emergency Management Planning
Research, create, and practice site-specific emergency management plans to enact during the passage of a severe thunderstorm:
Always verify the details of your insurance coverage for hazards associated with severe thunderstorms. While your scheme may cover wind damage sustained during a passing thunderstorm, supplementary protection policies may be required for other threats such as flood and hail damage.
For more information on coping with thunderstorms, read our advice sheet on How to Prepare for Thunderstorms.
Click here to see the Enhanced Fujita Scale for tornadoes according to wind speed and damage created.
]]>1. What type of assignment will the employee have?
Start by analyzing what you will need your employee to do. Will the employee be traveling on short-term assignments (defined as a stay ranging from days to several months, but generally less than 12 months), long-term assignments (usually defined as 12 months or longer, but generally for a set period of time, and the employee will typically maintain a home in the US) or will the employee be re-locating indefinitely, being compensated in local currency and benefits? Even business travelers traveling for short stays in other countries will likely need special visas. For example, although Canada is a friendly and tolerant neighbor, there are special requirements for business travelers, as you would expect for business travelers to the US. Before you send your employee to Canada or another country as a tourist, consider that traveling without the proper documentation, even for a short trip, could result in in detailed questioning at the border, a search of personal electronics, detention, or even the employee being turned away at the border. Employees who are dishonest about their travel purpose or have inadequate documentation may be banned from future travel to that country or face deportation or even criminal sanctions.
2. Assess Risks and Develop a Plan
A thorough risk assessment should be made prior to sending any employees overseas. Maybe the travel destination is not known for kidnappings, political unrest, or terrorism, but what if the employee hits his head? What if is in a serious car accident? Will your U.S. medical insurance cover the employee’s medical expenses? Employers may want to contract with a specialty firm that provides in-country medical and evacuation services in the event of a medical emergency. At a minimum, employers should be familiar with the country’s medical system and understand what an employee needs to do to access emergency medical care. What if the employee needs surgery? Is the local blood supply safe? Any special vaccinations required or precautions regarding food or water? Depending on the destination-country’s health care system, employers may want to consider contracting with a local medical group to provide care or to evaluate an employee’s need for evacuation.Will the employee be covered under state workers’ compensation plans even while on overseas assignment? Although most state plans cover employees who are overseas temporarily, depending on the country, U.S. employers are advised to purchase a foreign voluntary workers’ compensation policy for employees who will be on longer-term assignments.Prudent employers will also plan for less likely possibilities. What if the employee or a close family member is kidnapped? How will employees be assisted in the event of prolonged political unrest or rioting? The U.S. State Department website is a good place to start with any risk assessment, and provides a helpful outline of risks for a particular country. An international risk management firm also may be able to assist the employer to determine the best plan for a particular country, and may even be able to provide in-country assistance should a security or medical emergency arise.
3. Train employees prior to departure.
While it is always a good idea to provide employees with cultural sensitivity training for the travel destination, personal safety and security training should be included, targeted to the travel destination, and employees should be aware of any plans in place to protect their safety. The most frequent problems encountered by employees traveling overseas are petty theft and minor illnesses, but even minor incidents can escalate into big problems if the employee is unprepared.In addition to warning employees about the inherent risks of travel and any specific risks associated with the travel destination, employers should spell out the types of assistance available and give contact information for emergencies. Before designating a resource, be sure that person or group is available at all times (employees may be traveling to a country in a different time zone) and has enough local knowledge to assist in the event of a crisis.
4. Track your traveling employees.
Although employers must be sensitive to employee privacy concerns, prudent employers should have a general sense of where their employees are at all times. Consider asking employees to “check-in” whenever they arrive in or leave a country, and security or human resources staff should continually monitor the political and security situation in each country to which employees travel.
]]>Kidnapping for ransom has historically been a profitable enterprise. As American companies expand their bases of operations and global reach, the number of targets and the number of countries with perceived threats has increased exponentially. According to the United States Department of State, for example, Mexico reported a 300 percent increase in such crimes between 2005 and 2011. Latin America has long been the region with the most reports of kidnapping for ransom, followed by the Asia Pacific region, Africa, and the Middle East—all popular or budding locations for business and recreational travel by American executives.
In addition to identifying the geographical threats, there are many lessons to be learned from prior incidents of kidnapping for ransom. First, by all accounts, the vast majority of kidnaping for ransom incidents (more than 60 percent of reported incidents) end with the captive’s release in exchange for the payment of ransom—approximately $2 million on average. Close to 20 percent are released without payment, with the remainder of victims dying or being killed, being rescued, or, albeit infrequently, escaping. Given the reality that the police in many high-risk countries may also be the kidnappers, many kidnappings go unreported and even fewer have official police involvement.
In response to this unique risk, individuals and entities with a global presence are looking into a specialty line of insurance coverage known as “kidnap and ransom” insurance.
Understanding Kidnap and Ransom Insurance
Kidnap and ransom insurance policies provide coverage for high-profile and high-net worth individuals, executives travelling abroad, and individuals who appear to fit one of those categories. These types of policies then obligate the insurer to pay those costs necessary to secure the safe return of an “insured person” kidnapped in a “covered territory.” These costs include, most notably, the ransom amount paid (up to policy limits) on behalf of the insured person in
exchange for his or her release.
Additionally, depending on the terms of a particular policy, kidnap and ransom coverage can provide indemnity for a variety of other expenses related to the negotiation and delivery of a ransom payment. For instance, at the policyholder’s request, many kidnap and ransom insurers will hire and dispatch experienced security consultants to coordinate the negotiation and payment of the ransom. A number of policies likewise cover the cost of hiring an interpreter, if necessary,
to facilitate negotiations with the kidnapper. Some kidnap and ransom policies also cover payments to “informants” who possess and provide information concerning the whereabouts of the kidnapped individual or the kidnapper’s identity.
Many policies also cover the costs of medical and psychiatric care for the kidnapped individual following his or her release. Kidnap and ransom policies also commonly cover travel expenses incurred by the policyholder to fly the released individual (or his or her relatives) home.
Although kidnap and ransom policies can provide broad coverage for the various
expenses associated with negotiating and delivering a ransom, these policies generally contain
various exclusions as well. Some policies bar coverage for kidnappings that take place in certain
excluded geographical regions. Others purport to exclude coverage for kidnappings planned or
facilitated by a relative or employee of the policyholder.
Common Policy Conditions
Kidnap and ransom policies also typically include a number of policy conditions, some of which can impact coverage in significant ways. Because policyholders with kidnap and ransom coverage could be attractive targets for kidnap plots if the existence of the insurance was known, many policies contain confidentiality clauses prohibiting the insured from discussing the coverage with third parties. Breach of these confidentiality provisions can result in a forfeiture of Policyholders should also expect to see certain notice-related provisions in their kidnap and ransom policies. In particular, kidnap and ransom policies commonly require the policyholder to immediately notify the insurer and local law enforcement agencies of a
kidnapping. Failure to provide prompt notice of a kidnapping can, depending on the particular policy language at issue, jeopardize coverage.
Purchasing the Right Policy
Because the scope of coverage can vary widely from policy to policy, it is important that policyholders carefully evaluate their coverage needs prior to purchasing kidnap and ransom insurance. Indeed, by keeping a few tips in mind, policyholders can avoid many typical coverage disputes and ensure that they purchase policies that suit their particular needs.
For one, when purchasing a kidnap and ransom policy, the policyholder should pay close attention to who is insured under the policy. Insured executives may also want to purchase coverage for their relatives, friends, or employees. A good rule of thumb is to purchase a policy that covers each individual for whom the policyholder would pay a ransom in the event of his or her kidnapping.
Furthermore, policyholders should make sure that their policies provide coverage in the desired geographical regions. Some policies provide worldwide coverage, whereas others exclude coverage for kidnappings taking place in certain specified geographic regions. Therefore, when purchasing a kidnap and ransom policy, policyholders should take stock of their coverage needs and select a policy that provides the desired scope of coverage.
Policyholders should also carefully consider the practical consequences of policies with stringent notice requirements. Many kidnap and ransom policies purport to void coverage if the policyholder fails to immediately provide notice of a kidnapping to both the insurer and local law enforcement agencies. Such provisions may seem relatively uncontroversial, but they can
prove problematic in instances where the kidnapper forbids the policyholder from notifying local police or other authorities. To avoid coverage disputes over the enforceability of such notice-related terms, policyholders should attempt to negotiate more favorable provisions. For instance, policies that only require immediate notice “where practicable” can give policyholders much-needed flexibility when responding to a kidnapping.
Finally, prior to purchasing kidnap and ransom coverage, policyholders should closely review all policy exclusions and other limiting terms. In some instances, policyholders may be able to negotiate more favorable terms, often without any significant increase in premium. For example, the policyholder should take into account the quality and experience of the response team or security consultants hired by and paid for by the insurer.
Conclusion
With the continued globalization of business and business-related travel, more executives are contemplating the purchase of kidnap and ransom coverage. Although this coverage can be a valuable asset to those living and traveling in foreign countries, policyholders must make sure that they purchase policies that meet their precise coverage needs. Then, once a policyholder settles on a particular policy, the policyholder should carefully review all terms and conditions of the policy.
While one can never be completely prepared for a kidnapping, having the right policy in place—and understanding how it works—can provide peace of mind for those individuals living and traveling abroad in high-risk regions.
]]>How can there be a travel risk protocol for a location that the company has not visited in the past? The most critical parts of preparing the employee is training, planning, lodging, transport and information security.
]]>How do the US 50 states’ workers’ compensation laws protect US businesses and their global and domestic travelers at home and abroad?
INTRODUCTION:
Business Travel by United States companies has grown exponentially over the past years. As a result, both the foreseen and unforeseen liabilities for businesses and their traveling employees raise viable concerns for all involved. Employers yearn to know how duty of care, if any, state law, interstate law, federal law or international law impacts their businesses, employees domestically and overseas, and their potential liability. At the same time, individual employees undertaking the inherent risks of domestic and international travel need to be aware of their potential remedies in dire circumstances. The employee cannot naively assume their company’s policies, state laws or even federal laws protect them in any given circumstance. Many different factors come in to play when routine business trips take a turn for the worse. These factors include the differing business policies, state workers’ compensation laws, insurance, federal law, international law and choice of law between states and nation states. After a full analysis, both business and employee may benefit by exploring optional additional insurance for greater security. As business travel proves to be a core component of a successful business strategy and increased profits, a clear understanding of the aforementioned issues proves to be vital.
According to a recent Global Business Travel Association (GBTA) report, U.S. business travel should continue its steady rise. Business travel spending for 2013 is expected to reach $273.3 billion according to the GBTA BTI Outlook. This would be a 4.3% increase from 2012. The GBTA report further finds that the increase in travel spending after accounting for travel price inflation is projected to hit 1.3% this year in contrast to .3% in 2012. Further, international outbound business travel spending is expected to grow 3.0% in 2013 to $33.1 billion. Group travel spending is also expected to continue to grow in 2013 by 5.3% to $117.1 billion. (Rebecca Carriero, Latest GBTA Report Finds that U.S. Business Travel Should Continue Its Steady Rise, (July 9, 2013),http://www.gbta.org/foundation/pressreleases/Pages/rls_070913.aspx.) It has been reported that industries increasing spending on travel increase profits, nearly tripling their return on profits for each dollar spent on business travel. (New Research Shows the Effect of Sustained Investment in Business Travel, Business Travel ROI (May 2013),http://www.ustravel.org/news/business-travel-roi.)
The travel industry has, on average, created more than 12,000 jobs a month thus far in 2013 which is 50 percent more than the average gain of 8,000 travel jobs per month in 2012. Travel jobs have made up more than six percent of total jobs added in 2013. “Since early 2010, the travel industry has been a significant source of employment growth for the economy by adding almost half a million jobs. Moreover, the increase in travel industry jobs has outpaced that of the rest of the economy, making up 92 percent of the jobs lost during the recession compared to 77 percent of jobs for the rest of the economy.” (David Huether, Travel Industry Adds Jobs At Faster Rate in 2013, U.S. Travel Association (Aug. 2, 2013), http://www.ustravel.org/news/press-releases/travel-industry-adds-jobs-faster-rate-2013.) Of the estimated 27,351,000 U.S. citizens traveling internationally in 2004, 28.2% indicated that business was a reason for their trip. (Clare E. Guse MS, Fatal Injuries of US Citizens Abroad, Journal of Travel Medicine (Sept. 19, 2007)).
As United States’ businesses continue to expand across state and international borders, potential risks for both the business and the business traveler increase. Some of these risks include roadway accidents, disease, civil unrest, terrorism, kidnapping, natural disasters, air travel risks and many more. The Census of Fatal Occupational Injuries Summary for 2012 showed a preliminary total of 4,383 fatal work injuries were recorded in the United States. (Bureau of Labor Statistics, U.S. Dept. of Labor (Aug. 22, 2013), http://www.bls.gov/news.release/pdf/cfoi.pdf.) Of these fatalities 17% were in transportation and 24% roadway related. Id. Although these statistics do not specify types of jobs for the fatal injuries, the indication remains that roadway travel increases risk of injury. The National Safety Council estimates that motor vehicle crashes are the number one cause of unintentional workplace deaths in the United States. (Employer Traffic Safety Program, National Safety Council,http://www.nsc.org/safety_road/Employer%20Traffic%20Safety/Pages/NationalHome.aspx.) Furthermore, the World Health Organization report on driving in developing countries explains that one in seven countries fails to have adequate road traffic laws to deal with major hazards. An estimated one million people die on the roads worldwide every year. (Jim Atkins, Killer Roads Are A Major Risk For Expats, iExpats (Aug.14, 2013),http://www.iexpats.com/killer-roads-are-a-major-risk-for-expats/ .)
Regarding international business travel, since 2001, 3,357 civilian contractor deaths have been reported as well as 94,727 civilian contractors injured. At least 55 civilian contractor deaths were reported in the second quarter of 2013 and at least 44 civilian contractor deaths were reported in the first quarter of 2013. (Defense Base Act Workers’ Compensation, http://dbacomp.com/defensebaseactcomp/2012/12/31/civilian-contractor-casualty-count/ (Dec. 31, 2012). Each year, more than a million people become sick or injured outside their home country. Traveling overseas on business presents many unique risks arising from language barriers, jet lag, endemic disease and driving hazards. (Protecting Your Employees Traveling Internationally, Chubb Group of Insurance Companies, (Dec. 9, 2013),http://www.chubb.com/businesses/cci/chubb2613.html.) These statistics exemplify the inherent risks business travel poses to both employer and employee. Navigating and preparing for these risks proves to be crucial for businesses and their traveling employees.
Currently, the United States law provides no one definitive legal precedent holding employers liable for negligence resulting in injuries to employees traveling abroad. (Mark Pestronk, Dispelling Notions of Legal Duty to Employees Injured Abroad, Travel Weekly (Nov. 3, 2011), http://www.travelweekly.com/mark-pestronk/dispelling-notions-of-legal-duty-to-employees-injured-abroad/.) However, United States laws regulating freedoms from discrimination do extend to United States citizens extraterritorially. Title VII of the Civil Rights Act (Title VII), the Americans with Disabilities Act (ADA) and the Age Discrimination in Employment Act (ADEA) protections extend to any United States citizen employed by United States companies and their sites overseas. Title VII of the Civil Rights Act prohibits discrimination in employment based on race, color, religion, sex, or national origin. These protections extend extraterritorially; however, there is a provision in Title VII stating:
| It shall not be unlawful under [Title VII] for an employer (or corporation controlled by an employer)… to take any action otherwise prohibited by such section, with respect to an employee in a workplace in a foreign country if compliance with such section would cause such employer (or such corporation)… to violate the law of the foreign country in which such workplace is located. 42 U.S.C. § 2000e-1(b) (2000) |
This section means Title VII allows discrimination in employment based on religion, sex or national origin “in those certain instances where religion, sex or national origin is a bona fide occupational qualification reasonably necessary to the normal operation of that particular business or enterprise.” (42 U.S.C. § 2000e-2(e) (2000)). Therefore, it is not a violation of U.S. law for an employer to engage in conduct that ordinarily would constitute illegal behavior if such behavior were required by law where the conduct took place. (Paul Frantz, International Employment: Antidiscrimination Law Should Follow Employees Abroad, 14 Minn. J. Global Trade 227 (2005).) However, interpretation of this section weighs heavily on the particular facts of each case as exceptions to employment discrimination prohibitions are extremely unusual.
Download the Full whitepaper including the Cases and Statutory Reference Appendix
]]>And yet American employers have been battening down for the Ebola pandemic possibly to come. Industrial health and safety experts have been recommending Ebola protective measures. Conferences on Ebola have been scheduled. Law firms have issued bulletins explicating the theoretical legal issues that might emerge were Ebola to infect American workplaces. The US Occupational Safety and Health Administration has even drawn criticism for not giving employers enough detailed guidance on preventing Ebola.
Meanwhile, where an actual Ebola pandemic rages in real time and endangers countless workers is West Africa, particularly Liberia, Sierra Leone and parts of Mali and Guinea. The World Health Organisation had declared Africa’s Ebola pandemic a “Public Health Emergency of International Concern.” The pandemic has killed well over 5,000 Africans with “more than 150 Liberian medical workers [having] died from Ebola.” (S. Fink, “Treating Those Treating Ebola in Liberia,” The New York Times, Nov. 6, 2014)
As of 2014, the most urgent real-world Ebola risk threatening the American workforce is in Africa—that is, the danger US-based staff face when traveling for work to West Africa. Think of researchers, journalists, consultants, medical relief workers, infrastructure development teams, government staff, government contractors, and American expatriates who happen to live and work where Ebola strikes.
And so the most practical Ebola question that employers should be asking about their American staff is: What is our liability risk as to our US-based employees and expatriates who contract Ebola while working overseas?
]]>About one-third of 139 travel buyers/managers surveyed in February-March by The BTN Group and Travel and Transport said they had considered the pros and cons of open booking while another 29 percent said they expected to do so in the next six months. The remaining 38 percent said they hadn’t evaluated the merits. Interestingly, 128 other buyers who answered questions about other emerging topics on the survey, skipped the open booking questions.
Proponents contend that open bookings are the traveler-centric solution to appease a new generation of travelers, the millennials, who don’t want to be told where and what to book. They also point to the rapidly developing technologies, apps, distribution options and supplier promotions that an open booking strategy would allow travelers to tap into.
Opponents argue that open bookings portend the end of managed travel as we know it and warn of the loss of negotiated discounts, savings, data and information for duty of care programs. And they note that an open bookings strategy would generate other costs to garner data and service travelers.
This BTN Group white paper, sponsored by Travel and Transport, will explore the opportunities that have prompted some to embrace the concept, as well as the challenges for managed travel programs, travel management companies and others in the managed travel ecosystem.
Unmanaged or Open?
If open booking is about allowing travelers to book in whatever channel they prefer—whether that is the preferred online booking system, supplier site or thirdparty—some question whether the concept is really unmanaged travel. Even open
opponents are quick to note differences between unmanaged and open booking.
“Unmanaged travel is simply something you have no idea about; people going to conferences and events and booking in different manners,” Oracle global travel process and policy owner (GPO) Rita Visser told participants at The BTN Group’s Tech Talk conference. “Open booking is giving travelers the opportunity to make other choices; choices outside their program and still trying to manage them.”
Cognizant global travel manager Kathleen Kaden said her definition of open booking is “how do you take unmanaged travel,” whether from conferences or booking client hotel rates through outside channels, “and bring it back into your program before it happens so you can have some effect on it,” before the money is spent.
Proponent Dorian Stonie, senior manager of global travel and social technologies for Salesforce.com, told Tech Talk participants that the difference with open booking is “do we manage on the front-end or backend? With open booking, we’re opening up the distribution channels, but managing the information on the back end,” instead of a more traditional program that relies upon “one global travel management company, one distribution system and one online booking tool.”
The travel industry is changing, Stonie noted. “Our distribution channels are fragmenting on a daily basis. There’s a new promotion or new grouping of preferred programs. Instead of trying to prevent all the new apps, programs and use of such promotions, we want to offer a program that’s flexible enough to embrace them, to bring in areas of additional savings, while also strengthening our relationships with preferred suppliers.”
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]]>Universal Weather and Aviation covers seven key factors private firms should consider when developing security options for private airports and aircraft. This includes vetting security personnel, parking considerations, and more.
Click here to view the article Originally published on Universal Weather & Aviation, Inc.
]]>Click here to view the article Originally published on Universal Weather & Aviation, Inc.
]]>Though duty of care has existed in common law for a long time, the application of duty of care laws to the corporate travel community is a relatively new trend. The laws hold that it is the obligation of a company to maintain reasonable care of its employee during the course and scope of his or her business travel. In the corporate travel sector, duty of care extends to the safety and security of a company’s mobile employees.
In days past, bottom-line cost was the main business driver behind the implementation of a travel policy. Cost control, not traveler security, was paramount. It was common to hear corporate travel managers ask, what is the expense in booking tickets from a non-preferred vendor? What is allowable in terms of hotel stays?However, as economic growth has spurred travel to emerging markets and unfamiliar places, the rules of the game are changing. Safety has now become just as powerful a driver as cost.
This policy shift has prompted travel managers to ask questions in a different way. For example, what is the danger in reserving a car for my employee with a non-preferred rental car company? Are rental cars that are used well-maintained and up to date? How safe is it for my employee to stay in a hotel that has not been vetted? What is the hotel’s security policy? Clearly, the language surrounding travel expectations is changing to reflect a growing desire to mitigate threats and lower costs, but also to protect a company’s greatest assets – its people.
Duty Of Care 101
In most cases, duty of care implies that the employer is legally liable if an employee travels for business and needs any kind of intervention or assistance. “A responsive travel policy that strongly emphasizes duty of care has several layers,” states Bruce McIndoe, CEO of iJET, an intelligence driven provider of operational risk management solutions headquartered in Annapolis, MD. “These layers address the financial protection of the company, an integrated risk management component that emphasizes prevention, and the clear communication of norms and expectations regarding travel for employees.”
The United Kingdom sparked international interest in duty of care when it passed the Corporate Manslaughter Act in 2007. The law establishes significant consequences for companies who intentionally or unintentionally put their employees in harm’s way without taking sufficient precautions. The sub-phrase, “without taking sufficient precautions,” is key. “In a court case, it is not enough for a company to plead ignorance – and it is this ‘should have known’ theme that drives the need for corporations to establish relationships with the corporate intelligence community,” according to Stephen Barth, founder of HospitalityLawyer.com in Houston,TX. HospitalityLawyer.com brings together legal, safety, security information, resources and solutions especially designed for the travel, tourism and hospitality industries. “Furthermore, many corporations wrongly believe they are ‘covered’ under workers compensation laws, not realizing the limitations of such laws in wrongful death situations or in damage limitations,” he continues.
The Language Of Liability
There is no doubt that in addition to cost and safety, liability is a major concern behind duty of care policy. A recent online article entitled “Corporate Travel Safety” describes the work of Dr. Lisbeth Claus, who is a professor of human resources at Willamette University and author of the Duty of Care and Travel Risk Management Global Benchmarking Study. Claus’ research found that of the 39 cases she reviewed “in which an employer was sued by an employee (or his survivors) over failure to provide duty of care, the employers lost 34.”
Liability issues often spur travel managers to think about how to frame duty of care. For example, suppose a business traveler in Sao Paulo needs cash immediately and goes to his nearest public ATM. While withdrawing money, he is robbed at gunpoint by masked men. If the traveler has not been clearly informed by company policy that a particular activity (in this 33 Business Travel Executive FEBRUARY 2013 case, the use of public ATM’s) is considered risky, and is discouraged or unacceptable, then the company has breached its duty of care to its employee. Had the traveler known not to use public ATM’s in Sao Paulo, he would have obtained cash in another way and not become a target for armed gunmen.
This is also known as the “duty to inform” – “a person engaged in a special and potentially dangerous activity must know or inquire of possible hazards or of any special duties and responsibilities inherent in that activity that might affect their ability to exercise reasonable prudent caution.” Thus, a travel manager must inform an employee of what is expected regarding actions to be taken (such as immunizations), potential hazards (e.g. diseases, armed robbery), and any prohibitions (such as using public ATM’s). Ideally, the employer would communicate areas where the employee must take responsibility.
To explain this further, iJET’s McIndoe offers the following real-world example: “In one instance, an employee, while on a business trip to Vietnam, went on a white water rafting trip. The trip was on a weekend, tacked on after the business workweek. During the rafting expedition the employee was injured, hospitalized and had to be flown back to the US on a commercial airliner, with costs totaling $22,000. The employee sued his company citing that he was never informed of the fact that his company policy did not cover him after formal business hours. Had he known, he would have taken out a personal insurance policy that covered him throughout the entire trip.”
Another principle revolves around the duty to warn, which is less broad than the duty to inform. “Duty to warn” indicates that “a party will be held liable for injuries caused to another, where the party had the opportunity to warn the other of a hazard and failed to do so.” Since the language of liability can get complicated, it may be wise for companies to consult with risk management providers such as iJET or seek legal counsel beforehand.
Plan, Protect And Respond
In a world of competing interests, strained budgets and constant demands on time, how do companies meet their duty of care obligations? First, they can look to existing laws. They can also seek out similarly situated businesses and evaluate what their standard of care is. “In the travel industry, we have begun to set benchmarks and best practices for what a reasonable prudent business, university or NGO would establish in regards to duty of care in their travel policies,” explains Barth. “For example, do these policies promote awareness, education and training? Are they pro-active or re-active in nature? Are they spending dollars just on insurance, or on any kind of prevention programs?”
There are three levels of creating a duty of care travel policy:
• planning a policy that is specific to your company’s and travelers’ needs.
• protection clauses in the policy that inform, warn, track and/or protect travelers.
• response clauses including evacuation or other insurance services.
Planning is the first stage where corporate intelligence companies and comprehensive risk management providers can tailor a policy to suit a company’s size, scope and travel demands.
Protection clauses must then be analyzed to see what levels of services are appropriate. For example, is it enough for your employee to take a local taxi from the airport to the hotel? Or would it be more prudent for a vetted car service to pick up the passenger and drive to a (vetted) hotel? Are medical checkups required upon return from a foreign country? Other protective clauses such as “do not drink the local water in the city” or “only use bottled water” go a long way toward saving hours of lost productivity that would result from employees falling ill.
According to Barth, it is also reasonable to suggest general best practices for employees while traveling during the course of business, such as not wearing flashy jewelry which may warrant unwanted attention, or not to go out into certain sectors of the city at night time. Other specific best practices depend entirely on the threat level of the destination. In certain cities where crime is high, it may be recommended that employees going to dinner only venture out in groups of two or more. Or that they limit themselves to specific restaurants that have been vetted for food quality.
Response clauses define what measures are reasonable for a company to take on behalf of its employees to keep them safe. This includes a rapid response/evacuation plan that can react swiftly to an emergency. Other options are a comprehensive medical plan, an extraction policy, or a kidnap and ransom policy.
“Also, an employer may want to include traveler tracking as part of its response plan,” McIndoe says. Traveler tracking was highly successful during recent events such as the civil unrest that erupted during the Arab Spring, or the earthquake and subsequent nuclear fallout in Japan. “We recommend tracking for all travel, because a disruption can occur at any time…for example, a plane crash into the Hudson River in New York City or the bridge collapse in Minneapolis,” continues McIndoe. “How will you find and communicate to your travelers during these moments of crisis?”
Travel Ahead Of The Curve
In today’s fast-paced environment as corporations expand across an increasingly unpredictable planet, the workplace is not confined to one location anymore. Workforces and offices are mobile and travel is a necessary tool to get the job done. As language shifts in the industry to better capture a company’s travel needs, herein lies a golden opportunity for travel managers to incorporate strong duty of care policies and procedures intended to safeguard employees during the course of business travel.
At the end of the day, enforcing suggested duty of care best practices becomes imperative. Often times, corporate travel managers are faced with tough questions such as, “Is non-compliance punishable? If so, are employees who depart from company policy required to pay out-of-pocket for their non-compliance?”
Some travel programs encourage the creation of a “duty of loyalty” culture which rewards business travelers for booking through preferred vendors or avoiding potentially risky behavior during their business trip. Others advocate developing internal programming such as workshops, events and classes that teach the benefits of compliance with duty of care policies. This awareness and educational component empowers employees with the necessary knowledge required to manage travel expectations, and puts responsible decision – making back in their hands.
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