Managing risk in the era of active shooters
Property managers must properly plan for the worst in an era of worsening gun violence and emerging risks. Here's how.
Workplaces, schools and communities across America are responding to the threat of active shooters with increased training, education and drills. Like every emergent risk, insurance is now trying to understand how to calculate and manage risk with new products and distribution.
Clues to the future can be gleaned from the work of one particular sector, real estate property managers who oversee an already complicated environment that combines housing with employment.
In 2020, that means understanding emerging threats from political tension and social instability. A massive gun rights rally in Richmond, Virginia, at the beginning of the year ended without any major incidents.
However, for property owners in the area, it was a reminder of the importance of being prepared when the threat of violence arrives at your doorstep. Knowing whether it’s a good guy or bad guy holding a gun on a property can differ with highly fragmented state regulations.
Similar to the raft of new sexual harassment laws emerging from different states, a perceived lack of action at the federal level is resulting in more complexity at the state and regional level. Add to that an election charged with anger and fear over how the losing side might respond to the outcome. It seems that each month brings new reports of people perpetrating mass violence motivated by extreme views and hateful ideology.
Insurance and training
Property managers and insurance providers with a real estate specialty are aware of the unique risks of their environments, where home life mixes with workplace stressors, and ideology and identity can run into each other and create a volatile situation.
Some are responding by purchasing stand-alone active shooter, or “active assailant,” insurance on top of their general liability insurance plan. Actuaries are attempting to amass enough data to make underwriting decisions and figuring out the right timing for coverage. The insureds are bringing in law enforcement officers and experts to conduct training with residents and employees to identify threats and respond responsibly.
These responses are valid. But they’re limited if they are separate from the core training program a business is pursuing for customer service and compliance, and it’s not connected to insurance coverage decisions. Property managers don’t have the time or resources to conduct extraordinary training sessions or buy new insurance plans each time a new threat emerges.
They need nimble insurance coverage and training programs that can quickly adapt to changes in the risk landscape without placing significant new burdens on managers and trainers.
Responding to risks early
The scenario provides another example of why digital solutions are stepping into the vacuum from claims intake, to risk mitigation.
Property managers need insights beyond what’s happening in their own facilities and communities. That’s where insurance companies and data-driven research consultants can be valuable partners. Insurers have a broad and detailed view of emerging risks through their claims intake process. By sharing this data with property managers, they can identify and respond to threats before they arrive.
But this information is only valuable if the property manager is plugged into training systems that can be quickly updated with the relevant regulations and best practices for responding to a new threat or liability. For most property managers, that means expecting more from your training dollars.
According to 2019 data from Grace Hill’s Multifamily Benchmark Training Report, most multifamily housing companies are increasing their training budgets. For large companies with more than 5,000 units, average annual training budgets were expected to rise from about $30,000 in 2018 to more than $46,000 in 2019. Among mid-size companies with between 1,000 and 5,000 units, training budgets were expected to grow by about $4,000 to nearly $18,000 annually.
This increased investment indicates that property managers are prioritizing training, but many have been slow to adapt data and technology tools that can bolster their efforts. While about 80 percent of property managers reported using learning management systems, only 26 percent of those systems were integrated with data feeds.
Increasing investment in training isn’t enough, it needs to be done with an eye toward agility. Small training teams cannot be expected to keep up with the shifting lift landscape on their own. Property managers need insurance and technology partners who can make sure their program is useful and based on the latest data. They need tools that allow them to see what’s coming before it hits home.
For more coverage like this, explore our “Active shooters, workplace violence and insurance“ Instant Insights page.
Dru Armstrong is CEO of property technology company Grace Hill, which focuses on policy, training and assessment software designed to develop, retain, and build talent. He can be reached at dru@gracehill.com.
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