Kidnap & Ransom: Necessary Protection in an Uncertain World

By Benjamin Thrush

Companies of any size can be a target for extortion threats against the organization itself and its employees. In the toy industry, where travel is vital as most manufacturers are located overseas, there are risks that need to be properly addressed with regard to kidnap & ransom.

Managing the cost associated with an extortion threat against a company's products, proprietary information, computer system, or people can be enough to push a small to medium sized company to its financial limits. These risks may not feel like everyday exposures, but too often they are. And when they happen, financial assistance to meet extortion demands and the extensive costs associated with negotiation and recovery may be necessary.

For a business, Kidnap and Ransom (K&R) insurance policies are available, and can provide coverage for:

  • Extortion threats against the company's merchandise, property, proprietary information, computer systems, and employees
  • Hijackings, wrongful detentions, and political threats
  • Reimbursement for ransom or extortion payments

They will also cover expenses such as:

  • Medical, cosmetic, psychiatric, and dental services
  • Rest and rehabilitation costs
  • Reward payments to informants
  • Access to a public relations firm - to avoid a PR crisis and protect and secure the company's image
  • Salaries of employees and temporary replacement employees
  • Accidental death or dismemberment coverage
  • Optional emergency political repatriation expense coverage
  • Access to crisis management expertise

High profile, successful individuals, and their families also face the risk of kidnap for ransom. Individual Kidnap and Ransom and Political Evacuation insurance policies are available; and because of the instabilities in our society, protection has never been needed more. Individuals with significant assets should strongly consider this policy to protect themselves and their family.

Through an exclusive coverage plan, individuals and up to 10 members of their family can be covered against Kidnap, Ransom and Extortion for up to $50 million. Worldwide coverage options are available.

Benjamin Thrush is the Vice President of Business Development at HUB International Northeast. Benjamin can be reached at 212.338.2260 or .