Blog-11-08-Kidnap

Abroad on Business? Watch out, there’s a kidnapper about…

August 2011

It may not be as far fetched as you think – regardless of size, whether firms or individuals conduct business internationally or just domestically, they can be a target for kidnapping or extortion.

The high risk industries are obvious – employees in the oil, gas, and mining industries, NGOs, war zone contractors and security firms. Certainly firms with employees either travelling to, or based in, Latin American and the Caribbean, Asia and the Middle East, Eastern Europe and Russia, and Africa should consider Kidnap & Ransom/Extortion insurance. The US suffers and even Western Europe is not immune, with Italy occasionally mentioned.

Kidnap & Ransom (K&R) policies generally provide for a specialist crisis management firm to deploy worldwide; negotiate hostage recovery; manage negotiations; liaise with local law enforcement agencies; briefing hostage affected families; and deliver ransom funds.

Express Kidnapping is now an increasingly common event – this is where people are approached often on the street and taken to withdraw funds from ATMs under duress (usually with firearms involved).

Extortion payment demands usually follow a threat to injure, kill, or kidnap; damage property; contaminate products; divulge trade secrets; or destroy data by computer.

Few instances of kidnap and extortion are reported in the press, as law enforcement agencies generally prohibit details from being released so as not to encourage others, but the statistics are worrying – some estimate 15,000 kidnaps for ransom per annum, but as many go unreported, there could be many many more. Many countries expressly forbid by law the payment of ransom or extortion monies for the same reason.

Most kidnappings occur from 7am to 10am; take place on a road; usually within one or two miles from their home or hotel; and are resolved within several weeks because a ransom is paid.

Despite the risks, relatively few firms with employees travelling abroad insure their business and employees. Such lack of proper cover at such a critical time can result in a huge financial loss, not to mention the human costs.

Even the largest of companies are unprepared to negotiate with kidnappers or extortionists. However professional assistance before, during, and after a kidnapping or extortion threat can result in a safe and relatively successful outcome.

K&R policies provide for kidnap or extortion payments (now with options for cyber extortion); ransom delivery; expenses in connection with kidnapping, extortion, hostage taking; child abduction; hijacking; political threat; or wrongful detention. Cover is generally on a reimbursement basis.

Accidental death and dismemberment are also generally catered for as well as evacuation and repatriation costs. Extortion cover can include product recall costs, business interruption and PR costs.

Cover is relatively simple to obtain and can be tailored to either individuals or whole companies, for one-off trips or annual policies. Premiums start from just £500 for individuals and small firms. Several insurers offer cover. One significant condition of all such policies is that their very existence must remain secret and passwords are often utilised even in the administration of such policies.

For further information and quotations speak to Liz Kelly on 01253 598958 or liz@rowlands-hames.co.uk

Visit our dedicated website page

Follow @rowlands_hames