Kidnap, Ransom and Extortion (KRE) Policy
As many as 25,000 kidnaps are reported each year in over 40 countries, mainly in Latin America, Russia and Asia, with the average ransom payment doubling in the last few years and some payment demands exceeding USD 50 million. Whilst the most vulnerable companies are those that have employees based or travelling overseas; organizations which have high profiles, handle large amounts of cash, or work with sensitive information or technologies can be attached as well. Kidnap and Ransom Extortion Insurance not only protects against financial loss but also provides the services of leading crisis management and security consultants, to manage incident on the policy holder’s behalf.
Need for the KRE Policy - World over, terrorist activities have been increasing substantially over the last few years. Kidnapping for ransom money is also on the upswing. Any company of any size can be a target for extortion threats against the company and its employees. People tend to associate business extortion and kidnapping with global companies.
What does the cover include? The cover Includes:-
- Kidnap/Alleged Kidnap - A seizure or detention or carrying away by force or fraud of an insured person for the purpose of demanding ransom moneys.
- Extortion - Payment demands following a threat to injure, or kill an insured person; damage property; contaminate products; divulge trade secrets or destroy electronic data by computer virus.
- Wrongful Detention - Involuntary confinement by a government entity or insurgent organization
- Hijack - Illegal holding under duress of an insured person while travelling on any aircraft, motor vehicle or waterborne vessel.
- Ransom monies
- Loss-in-transit payment
- Ransom monies Related expenses: salary, personal financial loss, medical costs, rest and rehabilitation, travel and accommodation, loan interest, reward, interpreter, forensic analysis, other reasonable and necessary expenses, recall expenses, business interruption etc.
- Consultant costs
- Judgment, settlements and defense costs
- Death or Dismemberment arising from a covered incident