Kidnapping for ransom money is on the high. Kidnapping and ransom insurance for businesses now comes up in three categories. Firstly, as a part of comprehensive business insurance package, secondly, as a stand-alone policy for people and lastly some of the insurance companies provide it as a part of their home owners’ insurance policy.
Corporate policies normally cover most kidnapping-related expenses like hostage negotiation fees, lost wages and the ransom amount. On the other hand, stand-alone policy for individual plays a pivotal part in paying for the cost of dealing with a kidnapping. However, it does reimburse for ransom payments.
What is Kidnap and Ransom Insurance?
Kidnap, and Ransom Extortion insurance gives you numerous benefits and services. Apart from providing coverage for kidnappings and other happenings through a blend of financial indemnification and expert crisis management, a basic policy cover items like ransom payment, loss of income and medical care.
In addition, insurance companies can also give you some expert opinion on crisis management and can also impart employee training to prepare them if situation arises. This training can help them immensely in giving them the feel of what to do in a hostage situation to reduce losses due to kidnap or ransom.
When do I need Kidnap and Ransom Insurance?
According to one estimate, kidnap extortion and detention are real dangers for business firms operating both overseas and in domestic markets. Though, top management of these firms always overlooks these things by saying that it will never happen to us. They do not understand how much damage it can do on the business? With more than 1,000 annual kidnappings of business professionals and executives all around the world and number of terrorist’s attacks, such policies is an absolute necessity in the eye of life and health insurance professionals who travels internationally.
Kidnap and Ransom insurance policies gives a much-needed cushion to your business with regard to independent investigations, collaborations, arrangement and delivery of funds, and number of other services pivotal to a safe, speedy and satisfactory resolution.
Extortionists don’t discriminate on the basis of religion. Any business firm of any size can be a target for extortion threats against the firm and its employees. People tend to think business extortion and kidnapping always happen with firms who are global in nature. Radical groups and criminals are present everywhere. Kidnapping and ransom insurance will help you manage the costs link up with an extortion threat against your products, or your employees.