The Retailer Winter Edition 2023

THE RE TA I L ER

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RETAILERS: GET READY FOR PROTECT DUTY

Dan Fox UK Retail Practice Leader Aon

Scott Bolton Director, GBC Crisis Solutions Aon

n ew legislation creates a requirement for most retailers with public access to ensure preparedness for and protection from terrorist attacks

wider health and safety activity.” ‘‘

Protect Duty will need to be wrapped into the annual risk audit cycle, alongside

In early 2023, Protect Duty – the newly proposed legislation for public places to ensure preparedness for and protection from terrorist attacks – is expected to come into law. For the many retail spaces accessible to the public, the introduction of the Protect Duty legislation will lay down a raft of new security and safety obligations. Retailers need to start preparing now to understandwhat their obligations are likely to be under the new legislation and establish where their own organisation is in relation to the requirements, the path to compliance, and what the implications might be for their insurance programmes. Spaces Vulnerable to Terrorism With a business model that is predominately based on free access and with a minimum of control on those who enter, retailers are one of the more challenging sectors when it comes to considering how to actively manage access to and from their site. It’s no surprise that in its consul tation, Protect Duty refers to large organisations with more than 250 employees across all sites (e.g. retail, or entertainment chains) as in scope for the legislation. Smaller retailers should also consider the benefits that complying with the legislation will have on consumer confidence and footfall, particularly if there is an overt “safety rating” employed. Yet, it could be that given 28% of the Protect Duty consultation’s respondents suggested that organisations with any number of employees should be included, then they may also be required to comply. The NewMeasures What exactly retailers will have to do to meet Protect Duty require ments is still to be confirmed but it is likely every organisation over the threshold will need to make sure that their starting point is a thorough risk assessment undertaken by a competent person, that they have developed a robust plan on how to deal with a terrorist attack, and ensured that staff are trained and aware of threats, likely attack methods, and how to respond. The Government has also identified potential “appropriate and propor tionate” security measures associated with Protect Duty which could include the use of available information and guidance provided by the Government and the Police to consider terrorist threats to the public and staff at locations owned or operated. In addition, there is a requirement to assess the potential impact of these risks across functions and estate, and through systems and processes, as well as a need to consider and implement “reasonably practicable” protective security and organisational preparedness measures.

The new legislation is also likely to reinforce many existing, good prac tices around risk assessments and security delivery, though that’s not to say there won’t be a need for additional effort and spend. All retailers required to comply will see increased workload in the short to medium term to demonstrate they are aligned with Protect Duty; from risk assessments, through to investment in training, daily delivery and how they would manage the response to an attack before the arrival of the emergency services. Top Considerations for Retailers Protect Duty is putting in place minimum levels of preparedness for retailers that should help discourage attacks by identifying hostile recon naissance, and then mitigating the impact of any event by ensuring a joined-up response from retailers and the emergency services. While not yet in law and given the importance of a retailer’s brand and reputation – the safety of staff and customers being paramount - there are steps that retailers can take now to understand Protect Duty’s requirements; for example, key internal stakeholders – including finance, HR, life safety (security), and insurance – can be brought together now to manage internal expectations – as a minimum these roles will be utilising time to understand the requirements and their path to compliance, once the detail is published. The closer issue to address will be the renewal of their Casualty insurance programme, which markets have already indicated will be affected for PAL (PubliclyAccessible Locations) exposed entities. Protect Dutywill need to bewrapped into the annual cycle of assessment and audit of risk, alongside wider health and safety activity. Within the urban environment this may require coordinating both security delivery and response between several spaces; local authorities may have a role in facilitating this coordination. As a minimum, retail organisations will see additional training requirements for staff, and for some, technology investments as well as routine internal (and potentially external) audits of related activity. For publicly accessible retail spaces, new Protect Duty legislation will lay down a raft of new security and safety measures.” ‘‘