Kidnapping and Ransom Insurance is Something Many Companies Lack but Truly Need
October 1, 2015
One of the last things most employers think about or would want to think about is having an employee kidnapped or held for ransom. However, this does happen more often than most employers think it happens. The dangerous modern world brings plenty of risks for employees of businesses, and this is especially true of companies that send their employees traveling abroad. Extortion and kidnapping are not uncommon in foreign countries. The perpetrators use key employees of companies as bargaining chips to make money or other unscrupulous deals. In addition to causing personal trauma for the employee, kidnapping can result in great financial losses, interruption of business and negative publicity.
Kidnapping incidents do not have to include a ransom demand to be costly to a business. A kidnapping and ransom policy covers a variety of expenses associated with a kidnapping whether there are ransom demands or not. In a typical policy, fees for attorneys, professional contractor fees, travel costs, medical fees, extortion fees, costs associated with illegal detention, negotiation expenses, costs related to hijacking, security consulting fees, rehabilitation expenses for the kidnapped worker, loss of reward funds and a reward for safe return are all covered inclusions.
Although the best practice is taking preventative steps to avoid a kidnapping incident, every company should look for ways to reduce its vulnerability as a whole. Fortunately, representatives from kidnapping and ransom insurance companies typically work with businesses to identify and address any issues and risks.
Kidnapping can take place in any part of the United States. However, it is more common in foreign countries. Some examples include Colombia, Afghanistan, Mexico, Iraq, Somalia, India, Yemen, Pakistan, Nigeria, Venezuela and the Philippines. Political and economic factors vary each year and affect the rate of kidnapping incidents and demands for ransom.
When the representative from the kidnapping and ransom insurance company meets with a business, that individual will help train company leaders and employees to lower their risks of serious incidents. It is also helpful to work with security consultants to organize prevention training and offer guidance to employees about what to do if they are kidnapped.
No business owner wants to think about facing such a traumatic event or scaring the workforce by bringing up such an unsettling possibility. However, preparedness is the key to employees' safety and the best possible financial outcome. The good news is that preparedness training and risk management consulting often bring about better security and less risk. In the event that a worker is kidnapped, the company at least has the peace of mind of being prepared, and the kidnapped worker will have knowledge of what to do to stay as safe as possible. To learn more about this type of coverage, discuss concerns with an agent.