NU Online News Service, April 20, 3:25 p.m. EDT
While maritime piracy off the coast of Africa has grabbed recent headlines, companies should be aware of increasing kidnapping and ransom risks for personnel traveling to many other areas of the world, an insurer is warning.
Washington, D.C.-based Clements International noted that the most kidnapping incidents actually occur in South America. The company cited Afghanistan, Mexico, Pakistan, the Philippines and Venezuela as areas where kidnapping is on the rise.
"Kidnapping occurs more often than most realize," Yan Bui, a commercial insurance executive at Clements, said in a statement. "There's intense focus now on Africa and the Gulf of Aden since Richard Phillips, captain of U.S. cargo ship Maersk Alabama, was taken hostage and then freed by the U.S. military. But this is certainly not a new problem, and international organizations and expatriates face other very real risks in the form of kidnapping, ransom demands and extortion threats."
Clements said that while the U.S. military rescued Mr. Phillips, governments are rarely involved in kidnapping situations, and organizations typically have to resolve crisis on their own.
"Organizations cannot afford to deny the threat that kidnap and ransom poses to their operations and employees," Ms. Bui said. "It is vital to ensure mechanisms are in place to safeguard against these risks."
Ms. Bui told NU Online that one such mechanism is insurance to protect companies. Kidnap and ransom coverages, she said, go into effect once a demand for ransom is made.
Insurance carriers have crisis teams that assist with negotiations, and insurers cover the ransom on a reimbursement basis, she added.
Policies typically cover kidnapping and ransom and accidental death and dismemberment, Ms. Bui said. She noted some coverages also include defense costs in the event a family member sues the organization as a result of kidnapping. She added companies should ensure that war risk is included so any kidnapping associated with terrorist acts would be covered.
© Arc, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to TMSalesOperations@arc-network.com. For more information visit Asset & Logo Licensing.