By Bill Flynn & Ken Anderson, Van GilderInsurance Corp.

American corporations are the face of the U.S. abroad, and areoften targeted by rogue governments and interest groups. Asinsurance brokers, we must educate our clients who workin unstable parts of the world on how they can prepare for theworst, examining both insurance coverage and other risk managementmethods.

Things to consider:

1. Kidnap & ransom coverage with carriers that offer specificcrisis response plans as part of their program
2. Workers' compensation and general liability insurance thatprovides worldwide coverage and does not exclude terrorism- relatedexposures
3. Foreign travel assistance coverage, including access tothird-party providers that specialize in assisting overseastravelers in the event of an emergency
4. Formal protocol for travelling to and while working in“at-risk” countries
5. Formal employee training in protocol.

Read related: “Kidnap& Ransom Coverage Keeps Pace With Growing Risks Around theWorld.”

K&R insurance encompasses a wide range of coverage optionsbased 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 bedifferent for each insurer, so you need to review coverage indetail with the organization and tailor it to the specific type ofexposure they want to address.

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

• Type of organization: Does the organization and its executivespresent 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 thecountry.

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

• 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 incidentmight 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 andinterpreters
• Reward to informant
• Legal costs.

Retaining a crisis management firm may also be part of anoverall risk management program, providing the followingservices:

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

Read related: “HCCGlobal Adds International Kidnap & RansomProduct.”

Risk control specialists can help you identify and addresscauses of loss to control your exposures and reduce claims whileprotecting both a company's employees and business.

Risk management and preventative measures can encompass a lot ofthings that may or may not be viable, depending upon eachparticular situation.

When traveling and working in high-risk countries, here are fiveareas to consider that are important to insurers whenwriting coverage for a company:

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

• Management approval of travel request to ensure there is avalid business reason for the travel that considers the risksinvolved
• An evaluation of the political stability of the countries beingvisited as well as local crime risks
• A plan to track the whereabouts, contact information anditinerary of any employee traveling overseas.

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

3. Does the company have designated protected livingquarters?

4. Whenever possible, is the company controlling its employeeconcentration exposure by limiting the number (i.e., less thanfive) who travel together?

Specific training programs are available for organizationstravelling to dangerous countries to educate their employeesin:

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

The U.S. Dept. State clearly outlines its role in internationalkidnap and hostage situations involving U.S. citizens. Forfurther information, U.S. citizens should consult the Dept. ofState to stay up to date by bookmarking its Bureau of Consular Affairs website,which also contains current travelwarnings and alerts.