Kidnap, Detention & Extortive Risks

Today’s global business leaders recognise that commercial opportunities can emerge anywhere. Taking a risk and venturing into less familiar territories can be necessary to secure opportunity.

Yet the persistent shadow of extremists, criminals and organised gangs means that the safety of individuals can be threatened. The risks range from kidnap through to extortion, illegal detention, political evacuation, hijack and attack.

In this context, global businesses have a duty of care to employees and their families that are working, living or travelling abroad. The ever-changing global security landscape can make it difficult to understand, control and mitigate risks.

Our diverse, global and creative team of specialists works as your agent and problem solver to overcome concerns or challenges, and work out a strategy to leverage your business volumes.

We believe insurance contributes to the growth of your business as well as providing crucial protection in unstable circumstances.

We find opportunities where others see challenges. Our entrepreneurial culture and exclusive analytical ability helps clients to identify and realise opportunity in volatility.

WHAT WE DO

Kidnap detention and extortive risks

Extortive risks can include:

illegal threats to cause damage to the insured’s property, or harm/abduct staff or publish/steal proprietary information with a ransom demanded as a condition of not carrying out such threats

an illegal threat to introduce a computer virus or cause denial of access/services or disclose electronically held-trade secrets with a ransom demanded as a condition of not carrying out such threats

the illegal taking of an insured person and holding captive by persons who demand a ransom from the insured’s assets as a condition of release

the alleged but not actual taking of an insured person with a ransom demanded as a condition of the release of alleged captives

the short-term kidnapping of an insured person (under four hours) where they are forced to withdraw cash or hand over possessions as a condition of release

the holding of insured persons under duress in one location, while specified terms are negotiated by the perpetrators with persons in the immediate proximity

illegal holding captive of an insured person by an opposing party who, as a condition of release, demands a ransom, or physical access by the victim to the insured’s property to collect a ransom

Kidnap detention and extortive risks

the illegal holding under duress of insured persons, whether by legal government authorities or a criminal group.

We can help put together an effective insurance programme, which should include:

  • Access to specialist negotiation/crisis management and cyber response consultants
  • Legal liability
  • Ransom/ransomware reimbursement and transfer
  • Expenses surrounding the event including PR consultancy, medical care, psychological counselling, legal advice, gross salary of victim(s) and family, childcare, travel and accommodation, rest and rehabilitation etc.
  • Personal accident
  • Business interruption (non-damage)
  • Network interruption (in respect of cyber)
  • Pre-incident funding from insurers to mitigate risks
  • Free access to travel security risk platform.

FAQs

There is no limit to how early an insured can come to the market with a request for insurance coverage. The more information the insured is able to share on the risk exposure the more meaningful the feedback from insurers will be. If the risk information submitted is minimal and there are outstanding questions, particularly where there might be historical claims or high risk country exposure, insurers will only be able to provide theoretical feedback at best.

  • Name of the insured company or family name (if purchasing for personal reasons)
  • Confirmation of assets/ turnover (as this is a policy of indemnity, we can only provide limits of indemnity which are equal to or less than your asset/turnover base)
  • Number of people to be covered by country of residence
  • Travel pattern of insured persons (locations, duration and frequency of trips)
  • Confirmation of any previous threats/incidents in the last five years

By the insurers? The policy is cancellable by the insurers ONLY for the non-payment of premium by the insured.

By the insured? This policy is cancellable by the insured by written notice to insurers. Earned premium will be calculated on a pro-rata basis and a return premium may be provided to the insured for the unexpired portion of the policy subject to insurer agreement.

Please contact the named response consultants on your policy immediately, as soon as an incident has occurred or is thought to have occurred and provide them with information regarding the nature of the incident, those involved and the location. The response consultants will provide you with immediate advice and guidance on what to do next.

With these policies, your insurer is exclusively tied to a response consultant who will support you in managing a crisis from start to finish. The claim number on your policy will be the dedicated response consultants’ number which is operational 24/7, 365 days a year. You may also wish to simultaneously contact your broker to discuss the insurance coverage however we would strongly recommend that your first point of contact should always be the response consultants. NB The response consultant works in the interests of the insured not the insurers.

Yes, these policies are highly confidential and a condition of the policy is that knowledge of its existence should be restricted as far as possible. For these reasons, we always recommend that only a select few individuals are aware of the policy’s existence.

Key Stats

20+ global security risk specialists
25 years’ broking and claims experience
Over 900 security risks claims handled
Only global credit and political broker with an in-house security team

WHY JLT

Clients wishing to purchase insurance for security risks need to ensure that they select a broker with the relevant skills, knowledge and expertise in their business sector. We believe insurance contributes to the growth of your business as well as providing crucial protection in challenging circumstances.

We find opportunities, where others see challenges. Our entrepreneurial culture and exclusive analytical ability helps clients to identify and realise opportunity in volatility. Here’s what makes us different:

  • We pride ourselves on being accessible across all time zones. By the very nature of these insurances, we understand the great time-sensitivities involved
  • Given the sensitivity and complexity for security-related claims, we advocate integrity, efficiency and confidentiality
  • We have the tenacity and desire to disrupt the market status quo and drive the insurance market forward with cutting-edge solutions. We pride ourselves in being seen as market leaders
  • We have a dedicated team of specialists around the world, focused solely on security risks, so you know you will always receive expert advice and support
  • Our long-standing relationships with the specialist insurers in this field means that our market leverage for seeking alternative structures to ensure the most competitive and holistic coverage is available to you. We set the trends, not just follow them
  • Our proprietary risk platforms and knowledge hubs are unique to the insurance market and can deliver you with critical risk insights
  • Our brokers draw on our in-house analysts’ expertise to identify current risk trends and forecasted risk developments globally that may impact you or your business.

Case Studies

Kidnap detention and extortive risks

Virtual kidnap

An American businessman on a work trip to Mexico City receives a phone call in his hotel room from extortionists claiming to have kidnapped his son in the US. The perpetrators demanded a USD 25,000 ransom payment to be made within one hour to secure his son’s safe release. Unable to get hold of his family to verify this kidnap incident, the businessman makes immediate payment. Subsequently, it emerged that the kidnapping was a hoax.

The insurance policy would respond by covering the following:

  • Response consultants’ fees and expenses to investigate the alleged kidnapping and verify the legitimacy of the perpetrators’ claims and ensure the victim’s safety
  • Ransom reimbursement
  • Temporary security in the event the family felt threatened
  • Travel/accommodation costs for the businessman to travel home.
Kidnap detention and extortive risks

Hostage barricade

During a company conference at a hotel in Europe, the hotel is attacked by political extremists. Hotel staff and guests in the main lobby are held and the doors barricaded. The perpetrators make a set of demands to law enforcement outside and a negotiation ensues for five hours. The insurance policy would respond by covering the following:

  • Ransom
  • Response consultants’ fees and expenses to assist in managing the crisis at corporate level, family and victim level including negotiation, communications, law-enforcement liaison
  • Relevant additional expenses including PR consultancy advice, legal advice, salary of the victim(s), medical care, psychological counselling
  • Personal Accident including injury, death and permanent total disablement
  • Legal liability in the event that the victim(s) decide to litigate the company for failure in duty of care/ negligence.

Claims capabilities

We deliver results. We deploy all resources to help resolve complex losses and deliver claim payments. Our track record is unblemished.

Our clients have confidence that the insurance policies we arrange for them are expertly structured and written by experienced insurers with strong track records in paying claims. Our approachable brokers work alongside our meticulous CPS claims professionals who specialise in handling, managing and negotiating claims.

In the unfortunate event of a loss:

You would have a single point of contact with overall accountability for all losses wherever they occur

Our proactive claims handling process would help maximise your recovery under your programme, while minimising the intrusion and interference to your on-going operations

We would leverage our strong relationships with the major leaders, loss adjusters and lawyers to help expedite the claims process

You would have access to our sophisticated pre-loss consulting and effective post-loss recovery services.


CPS ANALYTICS

Our starting point when structuring a new policy is to precisely understand your needs. Our brokers sit alongside a team of risk analysts drawn from security, technical and academic backgrounds.

Their substantial knowledge is utilised to help us understand the precise nature of your risk profile, thereby assisting us in determining the right insurance solution for your requirements.

Using ground-breaking modelling and rating tools, such as Sunstone and World Risk Review, our analysts can pinpoint risks, map exposures, analyse the risk triggers, and evaluate probable maximum loss (PML) ratios across a portfolio of assets.

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