By Bill Flynn & Ken Anderson, Van Gilder Insurance Corp.

American corporations are the face of the U.S. abroad, and are often targeted by rogue governments and interest groups. As insurance brokers, we must educate our clients who work in unstable parts of the world on how they can prepare for the worst, examining both insurance coverage and other risk management methods.

Things to consider:

Kidnap & ransom coverage with carriers that offer specific crisis response plans as part of their program
Workers' compensation and general liability insurance that provides worldwide coverage and does not exclude terrorism- related exposures
Foreign travel assistance coverage, including access to third-party providers that specialize in assisting overseas travelers in the event of an emergency
Formal protocol for travelling to and while working in “at-risk” countries
Formal employee training in protocol.

K&R insurance encompasses a wide range of coverage options based on the type of exposure the organization wants to insure. Coverage could include an organization's directors, officers, employees, relatives and guests. Insurance policy forms can be different for each insurer, so you need to review coverage in detail with the organization and tailor it to the specific type of exposure they want to address.

Considerations for the type and extent of coverage can depend on a number of factors, including:

Type of organization: Does the organization and its executives present a high public, business or political profile?
Business locations and number of employees at each
Locations traveling to outside the country
How often and how many employees travel outside the country.

In addition, the types of events that a company may insure might include:

Kidnap for purposes of ransom
Hostage crisis
Political motivated threats
Assault or physical attack committed with a weapon
Extortion threat
Interruption of business due to workplace violence.

Reimbursement of expenses in the event of an incident might include:

Payment of ransom
Crisis response firm services
Travel evacuation and repatriation expenses
Security guard services required as a result of the event
Medical and psychiatric care
Costs of independent public relations firms and interpreters
Reward to informant
Legal costs.

Retaining a crisis management firm may also be part of an overall risk management program, providing the following services:

Security services and risk reduction services worldwide
Critical on-the-ground advice and assistance on a 24/7 basis
Access to online intelligence services, including up-to-date risk reports and travel advisories by country.

Read related: “HCC Global Adds International Kidnap & Ransom Product.”

Risk control specialists can help you identify and address causes of loss to control your exposures and reduce claims while protecting both a company's employees and business.

Risk management and preventative measures can encompass a lot of things that may or may not be viable, depending upon each particular situation.

When traveling and working in high-risk countries, here are five areas to consider that are important to insurers when writing coverage for a company:

1. Does the company have an overseas travel policy? This should include:

Management approval of travel request to ensure there is a valid business reason for the travel that considers the risks involved
An evaluation of the political stability of the countries being visited as well as local crime risks
A plan to track the whereabouts, contact information and itinerary of any employee traveling overseas.

2. Does the company provide employees with security escorts and transportation everywhere they go?

3. Does the company have designated protected living quarters?

4. Whenever possible, is the company controlling its employee concentration exposure by limiting the number (i.e., less than five) who travel together?

Specific training programs are available for organizations travelling to dangerous countries to educate their employees in:

Identifying and removing themselves from potentially dangerous situations;
What to say and do in the event they are in a hostage situation;
Dealing with the emotional stress of being a hostage;
Recognizing potential escape situations.

The U.S. Dept. State clearly outlines its role in international kidnap and hostage situations involving U.S. citizens. For further information, U.S. citizens should consult the Dept. of State to stay up to date by bookmarking its Bureau of Consular Affairs website, which also contains current travel warnings and alerts.

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4 Questions to Ask to Protect Clients Against an International Crisis

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