Security Risks Management

With the diverse range of security risks that businesses and their workforce face globally in an increasingly litigious society, it’s becoming more critical now than ever to have a robust and holistic security risk and crisis management strategy in place.

There is also an increasing need for companies to have expert resources available to call upon when required.

A crisis incident involves multiple stakeholders: the victim, victim’s family, the company including shareholders, directors, employees and the media.

The ability to manage an emergency situation anywhere in the world, whilst also trying to manage the various parties involved is a critical skill. Having a security risks policy in place which underpins a company or family’s crisis handling protocols will streamline this process and provide immediate professional response support from start to finish.

WHAT WE DO

Security risk management

Where your in-house security team may need additional resource and capacity to deal with such risks and threats, there is a unique insurance security solution now available which delivers bench strength to your existing in-house capabilities via unlimited access to a market-leading security company’s analytical, investigative and response teams.

With a cost-effective, one-off annual premium, you will have access to expert teams globally enabling greater business resilience.

Uniquely this insurance product can be triggered not only on occurrence of an insured event but also ‘on suspicion of or on imminent threat’ of an insured event.

Security risk management

We can support your business in identifying their security concerns and creating bespoke insurance solutions, ensuring that their policy wording, insurer and response consultant are best-suited for your needs.

And when the worst happens and a claim arises, we’re there every step of the way in advising you on the best course of action, assisting with information gathering and negotiating with the insurer to obtain the best possible claims settlement, by leveraging our superior product knowledge, insurer relationships and claims experience.

Part of our role will also be supporting you in implementing pre-incident preventative measures through training and security reviews to help mitigate the risk, all of which can be part-funded by a proportion of your insurance premium.

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 facts

20+ global security risk specialists25 years’ broking and claims experienceOver 900 security risks claims handledOnly 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

Security risk management

Malicious vessel seizure

A European-headquartered shipowner’s vessel was detained at a major port in South America, after an inspection revealed there were hidden drugs. A large fine was imposed by local authorities with a demand for immediate payment. The owner suspects some level of official complicity due to suspicious inspection activity during inspection.

An immediate on-the-ground investigation was conducted to identify the actors involved to see if they had made similar demands in the past and a security consultant was deployed to advise on how to delay payment. Key authorities were identified and discovered not to be involved. Control Risks then acted as liaison to enlist their assistance in applying pressure on port officials. Investigators and forensic specialists built a case for the client who proved the drugs were loaded after arrival at the port and that the client was not involved. The vessel was released without payment.

Security risk management

Cyber compromise

Following a software update on one of the control systems at a power plant, the company noticed a lack of connectivity between sites in the region and a reduced power output.

Cyber security consultants, who are available 24/7 to respond to emergencies any day of the year, were contacted and a cyber-investigation was launched both remotely and at site. The investigation uncovered a malware on the system allowing the hackers access to data on power generation and output and importantly an ability to control some of the systems at the plant. The consultants hand held the crisis management team and delivered a vulnerability assessment, advising on measures to isolate the incident and prevent further attacks.

Key risks

Key risks your business or employees may encounter include:

  • Confiscation: wholesale seizure/expropriation of the insured’s property, outside of where the insured’s HQ is located, by legal government authorities without justification or where such justifications are false
  • Deprivation: denial of access to the insured’s property, located outside of where the insured’s HQ is located, by legal government authorities without justification or where such justifications are false.
  • Civil unrest: a substantial disturbance of public peace by a group of persons acting with common intent that causes actual physical damage to the insured’s property, or bodily injury/death to an insured person or prevents the insured from accessing/exiting their property
  • Malicious damage: loss, damage or destruction to the insured’s property caused by anyone intending to cause harm or mischief committed for political, religious, ideological, revenge or similar purposes or solely and directly targeting the insured/insured person
  • Riots: a violent disturbance by a group of persons who threatens the public peace
  • Sabotage: actual or attempted damage, disruption or subversion of the insured’s operations by persons who are targeting specifically the insured’s physical property for the purpose of creating unfavourable publicity, delays in production, physical property damage, destruction of working relationships or harming employees/customers
  • War: declared or undeclared hostile action between two or more nations or states.
  • Cyber compromise: illegal breach of your information technology networks/computer systems by persons intending to steal, alter, damage or delay, prevent access to information contained on the insured’s network/computer system
  • Cyber threat: illegal threats against the insured to publish proprietary information, damage property/electronic property, divulge trade secrets or introduce malware on to the insured’s computer systems
  • Industrial espionage: attempted or actual taking of the insured’s proprietary information without the insured’s permission with the intention of revealing such information to a competitor or foreign government.
  • Environmental disaster: sudden discharge or escape of pollutants into land or structures, the atmosphere or any watercourse by the insured or in/at premises of the insured
  • Man-made disaster: human actions/omissions that are the principle cause for disastrous events that damage the insured’s property or could cause bodily harm/death or could cause business interruption to the insured’s business
  • Epidemic: human-human transmission of an influenza virus able to sustain community-level outbreaks
  • Natural disaster: any natural occurrence e.g. earthquake, volcanic eruption, tsunami, snow, rain, hail, flood, wildfire, hurricane etc.
  • Assault: acts resulting in immediate serious physical bodily injury of an insured person through use of a weapon
  • Murder: unlawful killing of an insured person
  • Stalking: unwanted or obsessive attention by an individual/group toward an insured person that directly/indirectly communicates a threat or places the insured person in fear
  • Product tampering: alteration or contamination of the insured’s products by a person who intentionally, wrongfully and maliciously renders the insured’s products dangerous for its intended use or consumption
  • Workplace violence: aggression, physical assault or threatening behaviour that occurs on the insured’s property and involves use of a lethal weapon and causes physical or emotional harm to an insured person
  • Criminal facilitation: an insured person acting with knowledge that another person is committing or intends to commit a crime against the insured’s property.
  • Blackmail: a ransom demand made against an insured person in return for not revealing compromising or injurious information
  • Detention: the illegal holding under duress of person(s), whether conducted by legal government authorities or a criminal group
  • Kidnap: 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
  • Product extortion: a malicious threat to the insured or the production of publicity that the insured’s products will be damaged, polluted, contaminated or rendered substandard with a ransom demand as a condition of not carrying out such threats or before providing further information about the affected products
  • Hijack: illegal taking of a vehicle, train, vessel or aircraft transporting insured persons by an opposing party who demand that a set of specified terms are met as a condition of release.
  • Cargo tampering: actual/attempted intentional malicious alteration or contamination of cargo while under your care, custody and control
  • Smuggling: unauthorised use of a vessel to transport contraband without your knowledge
  • Vessel assault: use of firearms against a vessel for the purpose of diverting/seizing/damaging the vessel
  • Vessel cyber breach: unauthorised acquisition, access or loss of data located on electronic systems aboard a vessel
  • Malicious seizure: the holding of your vessel by legal government authorities without justification.

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.

Read our latest insights