The threat of kidnap, Besso says, has become far more prevalent in recent times, and is an issue which is of particular relevance to business travellers and expatriates. Whilst many associate kidnapping and ransom demands with extremely wealthy individuals, anyone can be the victim of this crime.
Kidnapping and ransom insurance policies can provide both companies and individuals with protection against this type of threat. Should the worst happen, Besso asserts that this type of policy could mean the difference between a long and difficult negotiation or a quick, successful resolution. In addition to providing coverage for ransom payments and kidnapping negotiations, Besso explains that a policy of this kind can also cover threats relating to extortion, hijacking and wrongful detention.
Some polices may also offer other services including security advice and practical risk management procedures. According to Besso, companies or individuals that work in high risk industries or territories, or those that are planning a trip to a high risk destination, are advised to consider this type of policy. The policy can include coverage for an individual, a family or a corporation.
Generally speaking, these policies do not pay out a ransom on behalf of the policy holder; rather, Besso experts say that the insured must be the one to pay the ransom, and therefore incur the loss, and subsequently seek reimbursement for the payment under their policy. Some of the losses which a typical kidnapping and ransom insurance policy would cover include medical expenses, loss of the ransom in transit, and the ransom payment itself.
These policies will also usually indemnity any personal accident losses which are directly related to the kidnapping, including things such as disablement of the victim, dismemberment and death. Such policies sometimes include coverage for the expenses and fees associated with crisis management consultants; these professionals offer advice to the insured on how they should respond to the kidnapping. Although not found in every policy of this nature, there are some which also provide coverage for kidnap prevention training.