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Kidnapping for ransom is a lucrative business for perpetrators and more prevalent than you may think. The Insurance Information Institute (III) reports that kidnapping for ransom is on the increase.
Prime targets are wealthy businesspeople and their families, professionals traveling abroad, journalists, and aid workers. Most kidnappings of Americans for ransom or extortion occur in Mexico, Columbia, Central or South American countries, parts of Africa, or the Middle East. As a result, kidnap and ransom insurance is becoming an increasingly popular product.
Kidnap and ransom insurance is available as part of a comprehensive business insurance package, as a stand-alone policy for individuals, and as part of homeowners insurance policies issued by a few insurance companies. Corporate kidnap and ransom insurance is designed to help companies and organizations minimize the financial impact of kidnapping, extortion, and illegal detention. Organizations that may need this type of coverage include:
Individuals traveling or doing business in an area of the world that is known as a hotspot for civil unrest, economic instability, or clashes between law enforcement or the military and citizens should consider kidnap and ransom insurance. This coverage is also recommended for individuals with a high profile or a high net worth.
Kidnap and ransom policies cover some of the expenses associated with dealing with kidnappers and their demands. Corporate policies typically cover hostage negotiation fees, lost wages, and the amount of the ransom. Individual kidnap and ransom policies help cover the cost of dealing with a kidnapping, but will not reimburse you for ransom payments. They generally cover the cost of emergency evacuation from remote or dangerous areas.
This type of policy will help pay for trained hostage negotiators. These professionals know how to secure proof of life, when to call the police and when not to (where corruption exists), how to negotiate with kidnappers and terrorists, and how to ensure the return of the captive goes smoothly.
At least one insurance company offers kidnap and ransom insurance that covers:
Whether you are a business owner or an individual planning to travel abroad, our friendly agent can help you find the best quote on the right kidnap and ransom insurance to suit your needs.Filed Under: Business Insurance | Tagged With: Kidnap & Ransom Insurance