NEW YORK CITY—Guiding you through risks and potential underwriting perils, Lance J. Ewing of AIG provides his market-spanning insights. A recipient of the Risk Manager of the Year for Business Insurance and Risk Innovator of the Year awards, Ewing is an internationally recognized authority on insurance, risk management, crisis management and risk financing, among many other insurance and risk-related subjects. At AIG, he serves as the leader for Hospitality and Leisure, as well as the Real Estate Industry Practice Groups.

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No one likes to feel missed. But an increasing number of corporate executives, sales personnel and managers are exposed to the possibility of kidnap and ransom. Real estate companies in a global growth mode are well aware of the risks that are present for foreign employees in certain countries. Companies that send their employees to lands known for protests against the United States, are rife with internal country protests and unrest, make the headlines for drug trafficking or have a history of kidnaps should review their internal policies on overseas travel.

If there is no corporate risk management policy for overseas travel or how to prevent/mitigate a kidnap or ransom then creating one should be a top priority. There are several resources, including the US State Department website, the American Society of Industrial Security Association, your insurance broker or agent or your insurance carrier, along with outside security experts that can help formulate your own company policy.

According to some sources over $500M is spent annually on ransoms for kidnaps around the world. A solid corporate kidnap and ransom risk management protocol is part of the equation but an insurance policy is of equal importance. It is the insurance policy you hope to never have to use but is front and center should an event occur. A kidnap and ransom insurance policy routinely covers kidnap, extortion, hijacking and detention.

The policy normally reimburses or pays for ransom money paid due to a kidnapping, covers accidental death or dismemberment occurring during the kidnapping, transit and delivery losses from the disappearance, confiscating of ransom monies being delivered, and may cover medical care, a company public relations company or counsel to assist with the media, salary reimbursement along with relocation and job retraining. Other expenses related to a kidnapping incident may be added to the policy. Kidnap and ransom insurance polices may have limits that reach $30M and by endorsement cover could provide emergency evacuation and global consultants to negotiate with the kidnappers.

The insurance policies for kidnap and ransom are wide reaching but having the policy gives a real estate company access to valuable risk control/prevention tools as well as protocols for what to wear and how to act in certain countries to blend in with the culture, customs and rituals. Preventing the kidnap should always be rule number one.

For more information contact your insurance agent/broker or your insurance company.

Instant Insights /

Insuring Against Kidnaps

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