ISO Unveils KR&E Coverage

With kidnapping for ransom on the rise around the world, Insurance Services Office, Inc. (ISO) has unveiled a new policy insurers can use to offer kidnap, ransom and extortion (KR&E) coverage. ISO has also teamed up with Amsec International, a security-management and loss-control company, to provide insurers risk-mitigation and response services for their customers, wherever they are.

Part of ISO’s Commercial Crime and Fidelity insurance program, the policy allows insurers to provide worldwide coverage, with certain exceptions, for kidnap, ransom and extortion-related incidents through separate insuring agreements.

ISO will provide policy forms, endorsements, manuals and related KR&E materials. Amsec International can provide a round-the-clock, seven-day hotline insureds can call to report kidnap or extortion demands.

The company can also provide complete claims-response services, including bilingual negotiators, access to a website of travel-threat alert information, and contingency planning services.

“In these uncertain times, with growing threats against American citizens and interests in many parts of the world, ISO’s Kidnap, Ransom and Extortion coverage provides insurers a ready-made program they can offer to existing and prospective customers,” Domenick Yezzi, Jr., ISO’s vice president for specialty commercial insurance, remarked.

“The combination of ISO’s industry-standard policy forms and related information with Amsec’s security-management and consulting capabilities lowers insurers’ barriers to enter this niche market and makes providing a comprehensive portfolio of services easier,” D. Mark Lowers, Amsec president, added.

The ISO KR&E policy, approved by insurance regulators in 50 jurisdictions, provides separate coverages for:
*loss from the payment of a ransom from a kidnap or extortion threat;
*expenses incurred in obtaining the release of a kidnapped victim or in resolving an extortion threat;
*costs and fees paid in connection with securing the release of a detained or hijacked individual; and
*loss of money in the care and custody of the messenger delivering the ransom payment.

Optional endorsements available to insureds under the ISO policy include coverage for:
*payment to a kidnapped person or the person’s estate, if the victim dies or loses a limb or eyesight;
*product recall expenses incurred by an insured threatened with product pollution or contamination; and
*loss of business income and extra expenses incurred by an insured resulting from kidnap, ransom or extortion-related incidents.