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Is Kidnap, Detention, Extortion and Ransom a risk for your business?

Kidnap and ransom (K&R) are risks to people and businesses, although relatively rare in Australia, worldwide there are thousands of kidnappings every year and in many parts of the world it’s a way of life, with hundreds of millions paid in ransoms. So, is your company at risk and how can you make sure that your business is prepared?

There is general K&R cover provided under travel insurance policies or more specialised cover for higher risk countries and work.

Travelling overseas can be risky 

Many Australian companies have offices or operations, customers, or suppliers overseas which are travelled to regularly.  Kidnap, ransom, and extortion are risks for management and executives when travelling. If you are considering sending employees overseas to high-risk countries such as India, Indonesia, Malaysia, Pakistan, Philippines or Sri Lanka, it recommended that you check to make sure you have your insurance provides the right amount of cover and includes countries where you or your executives are travelling. 

What does Kidnap, Ransom & Extortion insurance cover?

If a company manager or employee is kidnapped, illegally detained, or receives an extortion threat then the insurance provides for:

  • Reimbursement of the amount paid in connection with the kidnap, detention, extortion or ransom; 
  • Engagement and payment of expert negotiators to manage and assist in negotiating the employee’s safe return or managing the extortion; 
  • Interest on loans used for ransom payments;
  • Legal liability

If you or your employees are intending on travelling overseas the Australian federal government’s website has a lot of information that can assist with staying safe. In addition, check your travel insurance or talk to one of our insurance advisers today about specialist cover.

General Advice Warning: This advice is general and does not take into account your objectives, financial situation or needs. You should consider whether the advice is appropriate for you and your personal circumstances. Before you make any decision about whether to acquire a certain product, you should obtain and read the relevant product disclosure statement.

All information above has been provided by the author.

Insurance Advisernet, ABN 15 003 886 687, AFSL 240549

This article originally appeared on Insurance Advisernet News and has been published here with permission.

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