The ransom and extortion industry’s danger zone has expanded well beyond Central and South America, yet companies tend to downplay the importance of a kidnap & ransom insurance policy, according to a new report by Lockton.
The report, authored by Lockton’s Michal Gnatek and entitled “Out of the Shadows: Selecting Your Kidnap & Ransom Partners,” says too often, companies complete an insurance application, choose the lowest price, and file it away without giving much thought to the decision that can make all the difference on the safety of their staff.
Lockton’s report explains how to choose a crisis response firm so that K&R insurance offers not only protection, but also preparedness in the event of a kidnapping.
The report identifies ransom and extortion industry trends and danger zones and reviews a process for securing K&R coverage and vetting crisis response teams to ensure a the right insurance program.
“We recommend that insureds focus on the back room: the crisis response firm that will be on the other end of the phone when the need arises,” Gnatek said. “They should have extensive language capabilities and a good history of successful negotiations, among other things.”
After choosing a crisis response team, Lockton recommends companies work with their insurance broker to select the insurer who can meet their needs. There are many factors to consider, including the relationship between the insurer and the chosen crisis response firm.
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