When people look to analyze a kidnap and ransom insurance policy, the first thing they look at is the ransom benefit attached to the policy. For example, in the event of a kidnap and ransom incident, the policy pays out up to $1,000,000 USD to ensure safe return of the kidnapped executive. While looking at the benefit is important, there are other aspects of a kidnap insurance policy that are far more important indicating the quality of a global kidnap policy.
Why the Ransom Benefit Should Not Be the Focus:
The ransom benefit is not terribly important because most international kidnappers don’t often require tremendous amounts of money in order to secure the safe release of the kidnap victim. In some countries in Latin America the final amounts negotiated to return the safe release of the kidnap victim is well under $100,000 USD. For all but the highest of net worth individuals, or the top corporate executives in the Fortune 500, a $500,000 USD ransom benefit is more than adequate for most.
Why the Consulting Company Behind the Insurance is of the Utmost Importance:
If that terrible call comes and a loved one has been kidnapped in Mexico, Indonesia, or the Philippines, the company that has been contracted to respond, attached to the kidnap and ransom insurance policy is the most important aspect of the policy.
First, but not the most important thing to know about the kidnap and ransom insurance policy, is the daily expense of the consulting company covered by your kidnap policy? If the kidnap consulting company has to fly a consultant to Ivory Coast Africa for example, is the $2,000 USD a day charge being paid by the insurance company directly? If not, is the insured responsible for paying the consulting charge, collecting receipts, and later sending in receipts to the kidnap insurance company for reimbursement? Worst of all, in some policies the daily cost of the kidnap consulting company is not even reimbursed and needs to be paid by the insured at several thousand dollars a day in some cases.
Most importantly, what is the capability of the international security consulting company or the kidnap consulting company that ultimately, is responsible for the life and death of the kidnap victim. This is not an area to “go cheap.” Here are the most common ways the kidnap consulting companies should be analyzed:
- How many total kidnap consultants do they have in the company on payroll and staff?
- Are they employees of the company or 1099, independent contractors?
- Does the company have international security consultants in my host country, or will it take 48 to 72 hours to get someone to my location, putting the victim’s life in jeopardy while the international security consulting company gets their act together?
- Am I guaranteed access to a top kidnap consultant, or do I have to get in line behind other larger clients of the kidnap for ransom consulting company? What is my priority in the event of a crisis?
The first 48 hours of a kidnap for ransom situation are the most critical and only the strongest consulting companies can respond adequately.