Kidnapping and Ransom and your employees

Posted on January 13, 2017 · Posted in Employee, Travel

Insight for business owners and risk managers

 

In a global trading environment, SME businesses are increasingly being involved in contracts that involved travel to areas that present some risk for employees. Kidnap and Ransom is a cover overlooked by companies when protecting employees, but it can be arranged to provide security for both employer and employee or contractor.

Insuring Freedom

Over the past few years, kidnapping has increased all across the world as more people turn to extreme methods of getting money. While many travellers feel they do not possess enough money to be targeted in a kidnapping, the truth is that a majority of kidnap victims have fairly average incomes. If someone is worth enough money to travel, they are worth enough to kidnap.

 

Kidnapping and Ransom (K&R) insurance is a specifically designed policy (personal or enterprise) that helps negate huge costs to individuals and companies who are victims of kidnapping. K&R does not pay for the negotiations and ransom money during the kidnapping; it simply reimburses the victim for the payment he or she made. K&R will, however, cover all the expenses related to recovery: time off, temporary work replacements, psychiatric therapy and loss due to injury.

Knowing the Threat

Regardless of whether or not a company has a K&R policy, it is important that employees travelling to high risk zones, know how to act if kidnapped. A best practice is training workers how to avoid danger in the first place. Educating travelling employees on risks and foreign practices is essential to every aspect of their safety abroad.

The harsh reality of kidnapping is that it can happen anywhere. Some areas of the world or parts of a country may be safer than others, but that doesn’t mean anything is guaranteed. Kidnappers are usually professional groups who know what they are doing and how to ensure money is paid.

Overall, K&R insurance is a solid risk transfer option and can provide a wealth of services for employers and individuals alike for businesses that do travel or are considering travelling to high risk parts of the world. Kidnap and Ransom also allows employers to demonstrate they have taken all reasonable steps to protect employees.