Being kidnapped isn't something most people consider to be ahazard, and generally they give it no thought. However, it's a serious risk in many parts of theworld.

'Express' kidnapping

Express kidnapping, which sounds like a variety of fast food,occurs when an executive is grabbed at an airport, quickly pulledinto a vehicle and taken to multiple ATMs to withdraw money.

There is usually a 24-hour withdrawal limit at the ATM, so theperson is kept for two to three days and then released.

Executives are easy to spot: They tend to bewell-dressed, with multiple electronic devices and expensivebriefcases, and they tend to come off the plane early, having flownfirst or business class. Once the kidnappers identify the victimand the level of importance within the company, the situation mayescalate. The employer and the family often pay to avoid riskingharm to their employee or loved one.

4 insuring agreements for coverage

Coverage, provided by ISO Form CR 00 40, Kidnap/Ransom andExtortion Coverage, has four insuring agreements:

• Kidnap/ransom and extortion — direct loss,

• Kidnap/ransom and extortion — expenses incurred,

• Detention or hijack, and

• In-transit delivery of property.

In most cases an individual is kidnapped for cash, but otherproperty may be demanded as well. All are covered by insuringagreement one.

The fourth insuring agreement covers the loss of property intransit in the custody of a messenger.

Definitions are key

The form distinguishes between "kidnap" and "hijack." Akidnapping occurs when someone is involuntarily abducted by forcefor the purpose of demanding money or other exchange for theirrelease. Hijacking involves holding the victim under duress whiletraveling in a motor vehicle, aircraft or watercraft for any reasonother than kidnap.

Hijacking is covered in the third insuring agreement as long asit is for an "insured person," which includes directors, trustees,partners, members or employees of any insured, and relatives,guests or residents in the household of an insured person or amessenger. Relatives include spouses, children, stepchildren,adopted and foster children, the spouse of a married child, agrandchild, brother, sister, parent, adoptive parent, step-parent,grandparent, brother-in-law or sister-in-law, parent andgrandparent-in-law.

Understand the exclusions

The policy excludes dishonest, criminal or fraudulent actscommitted by an insured person or named insured. It also excludesthe surrender of property inside the premises unless first broughtinside after receipt of the ransom or extortion demand, or outsidethe premises as a result of a threat to do bodily harm to a personin possession of property other than a messenger.

Coverage should be confidential

Keep such coverage confidential. The more people who know aboutit, the likelier it is that kidnappers learn that employees of thiscompany would be prime targets because insurance coverage exists.Kidnappers would likely see this as easy money and target suchemployees; therefore, it's best if the employees have no knowledgeof the coverage.

Christine G. Barlow, CPCU is managing editorwith FC&S, a resource for insurance coverage analysis.She may be reached a [email protected].