‘Occupy Wall Street’ Will Test Public,
Private Sector Liability Coverages
BY CAROLINE MCDONALD
THE OCCUPY WALL Street (OWS) movement, which has now spread to a number of cities across the United
States, will test both public and private entities when claims start rolling in, says one
risk-management expert.
While most cities are accustomed to
demonstrations, they may not be prepared
for an ongoing movement like OWS, says
Lori Seidenberg, a member of the Risk and
Insurance Management Society’s board of
directors, who serves as board liaison to the
society’s Standards & Practices Committee.
“Something like this could not have been
anticipated by any risk manager,” she says.
“I know there is always a chance of a gather-
ing in a park, but I don’t think a prolonged
occupation was on anybody’s radar.”
Seidenberg, also vice president of en-
terprise risk management for Centerline
Capital Group in Manhattan, notes that
while the perception is that Zuccotti Park
is a public space, it is owned by a private
organization. “I can’t think that even [the
owners] thought this would happen,” she
says, pointing out that at any time, they
“can technically pull the plug on this.”
The reason they haven’t, she says, is
that the owners don’t want a negative out-
come or to appear to be unsympathetic to
occupiers, “even though it’s causing them
a lot of grief.”
As well as impacting the park itself, she
says the protest has a significant impact on
local businesses. For example, even though
portable toilets are set up, there are not
enough of them, meaning that protesters
frequently request the use the facilities of
nearby shops and restaurants.
This creates more potential for injuries
on their premises and for loss of income,
Seidenberg says, adding, “I know a lot of
businesses down there are hurting because
the usual Wall Street regulars who eat in the
restaurants are staying away. So they have
contingent business-interruption loss.”
Even though those businesses may be
losing money, their losses most likely would
not be covered by their insurance policies,
she explains, as the loss is not the result of
government or civil authority action.
ers are responsible for,” Seidenberg says.
“And you have to prove some level of negligence as well. But if this is something that
can’t be anticipated, then you can’t really establish negligent or sudden and accidental.”
“I definitely think there is going to be
subrogation potential, and they will pursue subrogation to recoup costs—not just
for lawsuits, but to maintain the park, and
after they leave, to clean it up,” she says,
noting that the OWS site has become a
tent city that boasts a medical tent, media
tent and food tent, among others.
She adds that some local residents are
also having trouble. “I’ve heard of cases
where the protesters have damaged personal property. I also understand there have
been confrontations [between protesters
and local residents],” she says.
Public workers also are at risk. “The
police who are there are being subjected
to [conflicts] day after day. Their public
health and safety is in question,” she says.
“I think you’ll start to see lawsuits coming from the people occupying Wall Street
as well, and at what point do you determine liability?” she asks. “Is it something
they caused themselves, or was there an
expectation that the police would protect
them from certain [risks]?” NU
