Just a few months ago, a senseless and tragic mass shooting at a midnight movie screening in Aurora, Colorado left twelve people dead and nearly sixty injured. Now, in the wake of the devastating tragedy, three of the victims’ families are suing Cinemark USA Inc., the owner of the Colorado theater, for negligence in its failure to provide the necessary security to its patrons. These developments raise the question, “Does your organization have the proper risk mitigation procedures in place to protect your organization’s bottom line in the event of random acts of violence?”
A recent Business Insurance magazine article points out that the shooting highlights many complex insurance questions, as Cinemark is self-insured for parts of its liability coverage. The plaintiffs in the lawsuit against the company allege that the theater’s lack of alarm systems and inefficient training of its employees are grounds for compensation. In a terrible and random situation like this, general liability coverage is usually a company’s first barrier against claims by victims; however, insurers sometimes offer other endorsements that may cover, among other things, post-traumatic counseling after a crisis. The potential for reputational risks associated with a crime of this magnitude cannot be overstated.
A Risk Management Assessment can identify risks and provide your organization’s senior management with transparency they need to develop and implement a plan to mitigate them. This proactive, three-dimensional approach to risk will not only help ensure that you have the right coverage, but will also help improve your company’s bottom line by lowering your Total Cost of Risk (TCoR).
If you would like to learn more about Risk Management Assessment, risk mitigation and lowering your TCoR, contact Al Sica at 732.395.4251 or at [email protected].
