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Term: Crisis Management Coverage

5 Apr 2015


Insurance coverage designed to help a business limit the negative impact of events on the business’ reputation. Crisis management coverage is most often purchased by larger organizations, but small and medium-sized businesses may also purchase the coverage if their profitability is closely linked to their reputation.


Technology allows news to spread quickly, with stories quickly disseminating across tv networks and the Internet via email, social media, and other websites. Most businesses don’t face threats to their reputation often, and because of the rarity of such negative publicity they are often unprepared for the results. For example, a bad review of a restaurant or a notice of a health code violation can easily spiral out of control, and can severely impact the ability of the business to stay open.

Insurance policies offering crisis management coverage may narrowly define the types of events that are covered. Types of events that may be covered include workplace violence, assault, firearm use, food contamination, and workplace accidents. Events may also include credit card breaches or the hacking of a company’s computer network by an outside party. The coverage may be triggered if news of the event is covered by the media, whether in regional forums or national forums. Coverage will typically apply for a set period of time, such as 60 days, after a crisis event occurs.

Policy coverage may include paying for communications professionals to assist the policyholder in identifying and executing a strategy to limit further impact of the event in the media. For example, the business may need to employ a public relations professional. The policy may provide loss of business income funds for a set period of time as well. In some cases, policies may cover post-event issues, such as funeral arrangements or counseling for individuals who witnessed or were involved in the event.

Covid-19 – Johns Hopkins University

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