The Threat of Kidnap, Ransom & Extortion
Kidnap and extortion is a legitimate threat for Canadian businesses. Unfortunately, in many parts of the world, these illegal acts have become a business in and of themselves, with sights set on wealthy Canadian companies and business travellers. To combat financial losses in the event of a kidnap or extortion situation, Kidnap, Ransom and Extortion insurance is a practical risk transfer option.
What is Kidnap & Ransom Insurance?
Kidnap & ransom insurance is typically a stand-alone policy for employees engaged in international business travel. It covers costs relating to events such as:
- Kidnap and ransom – seizing an employee with the intent to demand money in return for the employee
- Wrongful detention – confining an employee under the guise of government
- Extortion – demanding money with the threat to injure or kill an employee, damage property, divulge trade secrets or spread a computer virus
- Hijacking – holding an employee for an extended period of time against his or her will on an airplane, motor vehicle or ship.
Insurance carriers advise that employers not reveal that they have kidnap and ransom coverage. This confidentiality provision is designed to prevent employees from revealing to potential captors that they are insured. A large kidnap and ransom insurance policy may make the employee a lucrative target.
At Cornerstone Insurance Brokers, we can assist you in designing a kidnap and ransom policy that meets your company’s specific needs. Contact us today for more information.