Why the London Riots Created a Greater Business Travel Threat Than a Terrorist Attack

Introduction to the London riots threat

If you have business travel to London, you need to read this article. In this article you will discover why the London riots created a greater travel threat than a terrorist attack. We will examine the threat posed by the London riots and demonstrations, terrorist attacks and resulting travel delays, disruptions and changes. At the end of this article, you will have a specific understanding of the required business travel management response and awareness as to why this will happen again.

The London riots and demonstrations has resulted in one of the largest business travel disruptions of 2011.

London Riots and Demonstrations

The London riots and demonstrations have come as a complete surprise to many. It is not a unique event and certainly not unique to the UK. The scale, violence, fire and failure of the authorities is often something expected in other countries but the lack of preparedness for destinations like the UK is common and widespread. Therefore, the lack of preparedness and last-minute scramble to respond and the inability to avoid major business travel disruptions are widespread as a result.

Due to the footprint of disruption, many routes and modes of transport have been negatively affected. Simple commute from the airport, trains and ports to planned accommodation options have been altered and continuous review of hazard or threat assessment are required. Furthermore, travel support providers such as taxis, hotels, restaurants, emergency services an other basic amenities have also been affected, to varying degrees.

Travel and risk managers need to immediately identify:

Affected areas,
Degree of threat,
Affected and exposed (inbound and outbound) business travellers,
Arrival/departure points,
Safe and non-affected areas,
Mitigation or eradication options,
Cost of implementation,
Funds available,
Emergency support,
Accommodation options,
On-going or developing events,
Social or non-business activity,
Insurance claims and compliance requirements,
Cancellation criteria,
Resumption of travel criteria,
Extended event plans,
Travel alternatives (domestic and international)

The London riots have affected multiple support systems related to business and leisure travel. Any leisure travel disruptions will further compound business travel threats such as decreased accommodation options, airport congestion and increased public transport demand. Even simple actions like withdrawing money from an ATM will prove a challenge and compound the hazard/s.

The London riots have had a prolonged affect on UK business travel sector, far greater than the majority of terrorist attacks. Further affects such as planning and preparation for the 2012 Olympics will also contribute to the lingering affects.

A lack of planning and subsequent response capability by businesses could constitute a failure of duty of care, due diligence, corporate social responsibility, workplace health and safety or other related legislation.

Terrorist attacks less of a threat than London riots

With the exception of the Mumbai terrorist attacks, most have limited travel disruption and only affect a narrow band of travellers. Inclusive of the Mumbai terror attack, terrorist attacks typically have clearly defined threat elements (terrorist, bombings, gunfire, etc) whereas the London riots is a constantly changing and unclear threat. Most business travellers will be unprepared for such decision-making demands and lack sufficient experience to make consistent and safe decisions.

Most contemporary business risk management systems focus on location and plausible event threats, then seek to inform or prepare travellers for the best results to mitigate or eliminate the hazards and threats. Therefore, the bulk of business travellers will not be prepared or educated on how to respond in London, with such wide spread disruption and threats. Few will have residual knowledge from information and preparation for such events in other locations, considered more likely to be medium to high risk. Many of the supporting business travel management departments and managers will be equally unprepared and resourced.

A terrorist attack and other similar violent crimes would have a much smaller footprint of disruption, not affected such a wide business travel demographic, not affect business travel support providers so comprehensively or have such a prolonged impact on all exposed.

Routine travel delays, disruptions and changes represent one of the most persistent and probable travel risk management issues.

Travel delay, disruption and changes

Change management and the decision-making involved is one of the most commonly accepted workplace hazard concerns. This is equally relevant to business travel and business travel threats.

The instinctive and guided response of travellers to any delay, disruption or change can significantly affect the outcome of any spontaneous or new hazard as it presents. Particularly when this is the first level of response, before support options and resources can be activated or come into affect.

Travel delays have been triggered due to airport and airline workers unable to get to work, taxi drivers not able to refuel vehicles, hotels and staff overwhelmed, business travellers unprepared and convergence of business and leisure travellers upon all available exit travel nodes.

Access to information, at all levels, the ability to consume and process all the options and explore alternatives is imperative in this and similar travel disruption events. Crisis leadership will succeed more frequently than simple crisis management, to which are dependent upon timely and accurate information from all available resources.

Unfortunately, many will fail to fully understand the gravity of the events, the threats posed and respond or prepare accordingly. While many others exposed will chalk it up to another force majeure or random act that is just part of the rich experience of international travel. Courts, business travellers and peer review increasingly do not share this flippant view.

This scenario and lack of preparedness has been played out numerous times in recent history. Volcanos, volcanic ash affects, Japan’s tsunami, airport closures, airline failure and many others have caught business travellers and managers alike unprepared. This disturbing trend will continue.

Conclusion: London riots threat

You should now see why the London riots have a far greater impact and threat to travellers than you may have originally thought. We have examined the business travel threat posed by the London riots, terrorist attacks and resulting travel delays. You now have a specific plan for this and similar events and the required business travel management and response. This will happen again. Perhaps not in London, perhaps not a city wide demonstration but this kind and scale of business travel disruption event will happen more than once before the end of 2011. Review your plan and make the necessary enhancements now.

Know About Small Business Liability Insurance

Every business, whether it is big or small, wants to survive, sustain and make profits. But business of any type or size is unpredictable and may get into losses due to unwanted or unexpected circumstances like natural calamities, fire, theft or other riots. It is very difficult for small businesses to protect their occupation or business if they face adverse situations with their meager budgets. Many small businesses perish as they fail to cover these losses. So, it is very important for businesses to have a risk management system for their business to protect themselves against unforeseen losses.

Insurance, considered as a critical part of the risk management system is the only way for small businesses to protect themselves. Today, there are many types of insurance policies, of which Liability Insurance is considered to be the best one for small businesses as it provides compensation for the fines associated with liability cases.

It covers following risks:
Liability insurance protects a small business from loss or damage to the maximum extent. Business liability insurance options are very useful for businesses as they cover the business property, claims for injuries by employees and visitors, employee compensation and many more. Some of the common types of liability insurance for small businesses and their coverage are explained below in detail.

Business property insurance
Business Property Insurance, as the name itself indicates covers the business property of the small business. Its coverage includes the building or buildings in which you do business, carpeting, curtains, outdoor signs, property of others etc. If you choose a right business insurance property, it covers all the important equipment such as computers, machinery, supplies, stock etc.

Professional indemnity insurance
Professional Indemnity Insurance, also called as Professional Liability Insurance or Errors and Omissions’ liability insurance, is an extremely important consideration for small professional businesses that are in service industry. They are exposed to a wide range of claims that may include areas such as errors, omissions, professional neglect, falsehood, breach of confidentiality etc. This insurance protects businesses from the claims made by clients against the delivery of poor service. This type of insurance is generally purchased by professionals such as a doctors, lawyers, engineers, architects, brokers, financial advisers, accountants, consultants, building contractors, and attorneys etc. who run their own business.

Product insurance
Product insurance or Product Liability Insurance protects the business owners from the lawsuits filed against them for manufacturing or producing defective products. This type of insurance is very useful for small scale manufacturers or importers. This liability insurance protects small businesses in case a person is injured or died using a product manufactured or developed by the business.

Employment practices liability coverage
Employment Practices Liability Insurance covers small businesses against claims by employees or business associates when their legal rights are violated. This insurance policy protects employers against breach of employment contract, deprivation of career opportunity, discrimination, mismanagement of employee benefit plans, negligent evaluation, sexual harassment, wrongful discipline or termination etc.

Excess liability coverage
Excess Liability Insurance, also called as Umbrella Liability Insurance or Commercial umbrella insurance provides additional protection to any of several other policies that a small business might hold. It protects businesses when an accident or similar claim exceeds the amount of their existing liability coverage, which may include medical costs or other claim payments.

Workers’ compensation insurance
When an employee gets injured at the workplace, it is the employer who is responsible for the payment of medical bills. Sometimes these medical bills may run into thousands of dollars, which can be very burdensome for the small business owners to pay. The workers’ compensation insurance kicks in during these kinds of situations. The workers’ compensation policy provides wage replacement, medical, and rehabilitation benefits to the employees who get injured on the job.

Other insurance
Apart from the above mentioned insurance policies, there are many other insurance policies that help small businesses such as:
• Auto Insurance – to cover the company vehicles,
• Health Insurance – to protect employees when they are sick,
• Crime Insurance – to protect business against employee fraud,
• Key Employee Insurance – to protect small business against the loss of their key employee etc.

All businesses may not need the same type of insurance. In order to determine a perfect liability coverage for your business, you need to carefully consider all your needs and risks involved in your business. With a good insurance policy, small business owners can have peace of mind and focus on their business knowing that their business is well protected.