New hot spots are developing all the time inregions around the world. In parts of Asia, North Africa, LatinAmerica, the Middle East and the United States, criminal gangs,political turmoil and other threats are creating uncertain andhostile environments. Fast-changing conditions mean that regionscan shift unexpectedly from secure to unsafe. 

Some of these myriad risks can be seen in parts of LatinAmerica. In 2011, nearly a quarter of all kidnappings worldwidewere carried out in Latin America, with places such as Mexico,Venezuela and Guatemala ranking in the Top 10 globally, accordingto data from global-risk consultancy Control Risk.

The criminal model is also evolving, giving rise to “expresskidnappings” in which people working, studying or volunteering inforeign countries are held for a day or two and forced to withdrawthe maximum amount of cash allowable from their ATMs. Thekidnappers don't ask for a ransom, but the victim is often harmedphysically and traumatized psychologically before beingreleased.

ESSENTIAL PROTECTION FOR UNPREDICTABLERISKS

Against this backdrop of multiple hot spots and abduction risk,Kidnap & Ransom (K&R) insurance has become essentialprotection for businesses, religious organizations, K-12 schools,colleges and universities, the entertainment industry, hospitals,nonprofits and government contractors, among others. 

Awareness of K&R has grown to the point where risk managers,insurance professionals and executives in many industries andsectors, whether they're operating domestically or internationally,recognize its important role. While protecting their people isparamount, they also understand that meeting this duty of carerequires robust protections. If businesses or organizations fail tomeet that standard, employees, volunteers or others who are harmedcarrying out their duties may respond with a lawsuit.

Today's K&R insurance coverage has kept pace with risktrends and changing needs: Its total-security approach combines theprotection of insurance with the risk-management and on-the-groundservices of a crisis-management-and-response firm. The responsefirm works hand-in-hand with the insurer and, more importantly, theclient. In addition to kidnappings for ransom, extortion andillegal detention, coverages often include threats, disappearancesand emergency evacuations. 

Comprehensive coverage is a necessity as criminal behaviorcontinues to take new forms. Throughout the world's trouble spots,kidnappings remain a serious threat, often fueled by drug cartelsand other criminal enterprises seeking new sources of income asinternal and external power struggles cut intoprofits. 

But not all kidnappings follow this pattern. In the U.S.,hospitals, schools and universities often buy K&R protectionand use the risk-and-advisory component to create plans that guardagainst infants or children being abducted from their premises.This is just one example of how an insured can proactively workwith the consultant firm that works in partnership with theinsurance carrier.

In fact, many entities that buy K&R coverage see substantialvalue in the risk-management component: This is one reason agentsand brokers encourage clients to begin working as early as possiblewith the crisis-management-and-response firm, well in advance oftraveling to a new location.

Another important aspect of K&R coverage is that it enablespolicyholders to seek advice and intervention from the crisis firm.An employee could be the subject of threats or extortion, forinstance, but may be unsure about how serious the situation is orhow to respond. A crisis-management firm can evaluate the threat,determine if it's credible and gauge whether the company, and notjust the individual, is at risk. The firm's experts can then adviseaccordingly. 

The role of an outside firm is especially important in caseswhere law enforcement is criminal or corrupt and seeking their helpcan be hazardous. 

As domestically based and global/international operations growin importance for many businesses and institutions, the goal is notto limit opportunities but to pursue them safely. An effectiveK&R program that pairs a comprehensive policy with a top-notchcrisis firm is indispensable in mitigating risk and managinghigh-stakes situations.