A kidnap and ransom policy will provide cover for a firm of crisis consultants and also for ancillary advisors fees. Ideally the policy should not have a time limit on these services or financial limit or deductible for consultants fees. The focus should be the safe return of the victim and the policy should provide wide enough cover to encompass all the specialist tactical advice and guidance needed to achieve this. The policy should be on a costs in addition basis.
A ransom may take many forms from cash to securities or property. Most kidnap and ransom policies will also provide cover in the event that ransom is lost, destroyed or confiscated while it is being delivered.
Most kidnap and ransom policies will also provide cover for ancillary services that may be used to facilitate the safe return of the victim. These often include expert services and financial resources to minimise or remove the threat of extortion as well as money for informants and rewards, detection and forensic services and the like.
In some cases the services of a Public Relations expert will be needed. This will be particularly true in the case of high profile incidents or may be required to raise awareness of the situation or to seek information. A kidnap and ransom policy will often cover fees and expenses of a pr expert to manage communication with the media during the crisis.
In many cases the victim of a kidnapping will require medical treatment following on from the kidnapping. This might extend to physiological treatments as well as physiological ones. Many kidnap and ransom policies cover medical costs, not only for the victim but anyone involved in the handling or negotiation of the crisis. The cover may also extend to family members who have suffered trauma and stress. Policies typically include psychological and neurological treatment, counselling and cosmetic surgery.
Kidnap and ransom policies may include cover for the financial losses that result from the kidnapping � for example a victim will not be able to attend to their normal affairs whilst in captivity and this might result in the loss of a home due to the mortgage payments not being made, or a loss resulting from inability to exercise share options, or as a result of being uninsured. A business might also suffer losses as a direct result of the kidnapping, particularly if the individual concerned is a key member of staff such as the CEO or FD. Such losses can also be covered by a kidnap and ransom policy.
Victims of kidnapping may not be able to return to their previous jobs. A victim may be so traumatised by their experience that it is impossible for them to return to their previous job or they may need some form of adaptation to the work that they do after release. A Kidnap and ransom policy may include retraining costs for victims (e.g. external training courses) to facilitate this.
When the outrage has been resolved, a company can face further expense if the employee or their family decide to sue for failure to protect or for a breach of duty of care. Kidnap and ransom policies can include cover for the company to defend actions that are brought against the insured or an insured person as a reuslt of the kidnapping, extortion or wrongful detention.
In the event of a kidnapping, a company will often feel obliged to continue to pay the victims salary both during captivity and for a period of rehabilitation. During this time additional staff may be needed to carry out the victim’s role in the business. Most policies will include the cost of covering the victim’s salary while in capacity and in some cases the salaries of relatives who leave their jobs to assist with negotiations.