Insurance coverage for online workplace bullying and harassment?

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When safety risks are such that the insurance industry is addressing them, then you know they are both costly and frequent. And so it is with cyberbullying, with at least one major insurer now moving to cover expenses resulting from electronic bullying and harassment.

Jim Finkle, in a piece for Reuters news service, reports that Chubb, one of the nation’s largest insurance companies, now offers a $70/year rider to its master family protection policy, providing $60,000 of coverage “for expenses resulting from ‘harassment and intimidation’ over personal computers, telephones or mobile devices.” Finkle adds:

Covered costs include psychiatric care, temporary relocation services, education expenses, public relations services and cyber security consulting.

The policy kicks in when cyber bullying results in wrongful termination, false arrest, wrongful discipline at a school or a diagnosis of debilitating shock, mental anguish or mental injury.

Right now, the policy rider is available in only four states — “Colorado, Illinois, Indiana and Wisconsin” — but the company is taking it nationwide.

Potential coverage for workplace bullying, mobbing, and harassment

Although it’s likely that school-related bullying has figured most prominently in Chubb’s decision to offer this policy, the inclusion of wrongful termination and diagnoses of mental anguish or injury generally as triggering events indicates that electronic forms of workplace abuse are also covered.

Of course, this may lead to tricky questions under the policy, as bullying, mobbing, and harassment at work often mix face-to-face, behind-the-back, and online behaviors. Insurance companies are not generally known for generous interpretations of their own policies, so I can imagine some disputes arising over eligible and ineligible forms of workplace mistreatment.

Further evidence

This isn’t the first time that the insurance industry has started to grapple with workplace bullying. Five years ago, I reported that insurance companies are starting to include bullying-related legal disputes in their employment practice liability insurance policies for employers. This development was prompted by the likelihood of workplace anti-bullying legislation such as the Healthy Workplace Bill being enacted.

When it comes to understanding risk assessment, the insurance industry is among the leading indicators. This is all further evidence of growing public understanding about bullying behaviors and their effects on individuals and organizations.

One response

  1. It makes sense as a way to leverage change now that you mention this new form of coverage. Certainly in many ways businesses responding to calls for same sex partner coverage and benefits not only took care of gay employees but whether they intended to or not started normalizing the idea for every employee that sat through a benefits meeting and heard mention of domestic partner coverage. This could be a fruitful focus of organizing efforts.

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