Many benefits can be provided by a kidnap, ransom and extortion insurance policy. This type of insurance policy can provide coverage for kidnappings and many other events with a combination of crisis management and financial indemnification. Things, such as loss of income, interest on bank loans, medical care and even the ransom payment may be covered.
With the right kidnap and ransom insurance policy you can cover all named employees for aggregate amounts after the deductible is paid. Usually the deductible is about 10% of the total loss. Many companies are also utilizing this coverage for the crisis management teams and the training to help during a hostage situation. This can help to minimize any losses due to a ransom or kidnapping.
Who Should Consider Kidnap Insurance?
For companies working both domestically and overseas, kidnapping is a real danger. Many times management will overlook this danger and they dismiss it by believing “it won’t ever happen to us”. However, if you don’t carry a policy to cover extortion, ransom and kidnapping, the damage such an event can cause a business can be very severe.
Did you know that over 1,000 corporate professionals and executives are kidnapped every single year? It’s believed that criminals make over $500 million a year from extortion and kidnapping. If anybody within your company travels internationally, you should consider a kidnapping insurance policy.
Of course, not everyone will need this type of insurance. Those perceived to be wealthy are not the only ones that need kidnap and ransom insurance. Sometimes the liquid assets of the victim have very little to do with the perceived value of the victim, for the attacker. If you or anybody within your company travels to high-risk regions, such as Peru, Columbia or specific areas in the Middle East, this coverage may just save your company and your life.
What Protection Can Ransom and Kidnap Insurance Really Provide?
When a kidnapping happens and a ransom is issued, insurance can help with negotiations, arrangement and delivery of funds, with any independent investigations and with many other services to ensure a safe resolution in a timely manner.
Kidnappers don’t discriminate and they don’t care how small or large your company is. If they perceive some type of financial gain through the kidnapping of an executive, they may strike. People dent to believe kidnapping and extortion only happen with large global companies, but the fact is radical groups and criminals can be found everywhere.
If an extortion threat is made against your company, kidnap and ransom insurance will help you to manage the costs and minimize the loss. It doesn’t matter if the threat is against proprietary information, your computer system, the people in your organization or even your products, any threat can close the doors of a small to medium-sized business very fast.
If the potential for kidnapping is high in the area you plan to visit, getting a kidnap insurance policy will offer you the extra protection you need.