If your company operates overseas, you may need to purchase kidnap and ransom insurance for all employees from the CEO to front-line workers. While all policies offer a financial benefit, their real value lies in their security consulting services, says Jean McDermott-Lucey, vice president at ACE Specialty Products, the Philadelphia-based business unit of ACE USA that offers K&R insurance.
"Depending upon the size of your company, you may be well-poised to pay a ransom, but many companies are not well-versed in the kidnap business," says McDermott-Lucey, adding that there are only a handful of companies providing K&R insurance. "The primary goal is to get the person back alive in the shortest period of time and to position the company so it's not a target again."
Since policies vary, she recommends shopping around and asking the following questions:
* How experienced are your company, employees and security consultants in K&R?
* What is your capacity or limit? Not every insurer provides coverage above standard limits ($5 million to $10 million) for overseas exposure.
* What countries are excluded from coverage? Some companies are skittish about covering employees who work in high-risk areas, such as Iraq, Saudi Arabia or Colombia.
* If our company buys the policy, will you pay a portion of our costs related to prevention? Some insurance companies will contribute a percentage of your premium toward prevention services or programs that help keep employees safe.