Workplace Violence A manufacturing concern terminated an employee for nonperformance. The employee had been there for approximately two years and had previously made threats that he would retaliate against the company if anything ever happened to his job. On the day of his termination, he seemed very distraught and stated that he would make the company pay for his loss of job. As a result, the company immediately provided additional security at its facility and hired security guards at the gates 24 hours a day. Security consultants were also brought in to do background work on this person and conduct surveillance of his activities. In addition, the terminating supervisor was afforded protection at his residence, since the terminated employee knew where he resided. After 30 days, the threat appeared to have subsided. The cost to conduct the investigation and to provide additional security was $52,200. Investigative fees cost the company an additional $37,000.

Workplace Violence A female worker at a company was being stalked by her former boyfriend, who had a past criminal record for violent acts. The worker notified the police about the stalking, but no action was taken. When the boyfriend appeared at the company and became belligerent to the receptionist, management decided to provide additional security. Shortly after, the boyfriend attempted to come back on the premises and was arrested but released after two days. Following his release, additional security was once again posted to ensure a safe work environment for all employees. Additional security at the premises for 65 days cost the company $63,000 and advice from a security consultant cost the company approximately $22,000.

Employee Dishonesty An 18-year employee of a beverage distributor stole inventory and point-of-sale promotional items. This trusted employee had keys to the warehouse and would enter while the operation was closed to steal. After an anonymous tip from another employee, the company set up video surveillance. Further investigation confirmed that this employee had stolen $60,000 from his employer over the course of four years.

Kidnap Early one morning on the way to visit his properties, the owner of a family-run agriculture business was abducted. The kidnappers demanded a $3,000,000 ransom payment from the company or else they would kill the executive. Security consultants were immediately called to deal with the situation and the kidnappers. Because of the consultants' experience and knowledge of the country, the situation was quickly resolved and the victim was released unharmed after five days. The loss to the company include a ransom payment of $625,000 and expenses of $10,000.

Extortion A media company received a series of threats including a photocopy of a gun, notes in which threats of violence were made against specific employees, and phone calls which included recordings of gunshot sounds. Demands for as much as $50,000 had been made to remove the threats. The company brought in the police to conduct an investigation. In addition, a private security consultant was hired to analyze the notes, protect the premises and the threatened individuals, and set up a drop site for the money demanded. The threats continued for over three years without any violence occurring. The cost of the private security firm's activities eventually exceeded $4 million.

Employee Dishonesty Over a three-year period, employees of a manufacturing company had normal quality inventory downgraded to "subquality" and sold at lower prices in exchange for kickbacks. Initially, a whistleblower provided details about the scheme. Eventually, a quality control investigation uncovered the plot which ultimately cost the company more than $400,000.

Kidnap The daughter of an executive living abroad was abducted from his home. Her father's company was contacted by the kidnappers, who demanded $500,000 for her return. Fearing for his daughter's safety, the father paid the ransom, and she was released unharmed. When the executive's company was informed of the incident, it called in its security consultant. The security consultant verified the incident, and in the process concluded the family's maid had been involved. A ransom of $500,000 was paid and expenses totaled $15,000.

Extortion A paralegal at a real estate development firm received phone calls threatening to kill her if her firm did not drop a specific lawsuit. After several other life-threatening events including a voicemail of a ticking clock and a stranger bumping into her muttering "drop the suit;' the firm hired security consultants to protect her around the clock. No further threats were ever made after these security steps were taken. Expenses totaled $23,000.

Claim Examples are courtesy of the Chubb Group of Insurance Companies.