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All About Kidnap and Ransom Insurance

Does your business cause your employees to travel to foreign countries? If so, and these countries include Mexico and places in the Middle East, you should consider purchasing a kidnap and ransom insurance policy to best protect your employees. This type of insurance is used to reimburse companies for possible ransom payments if an employee were to be kidnapped, hijacked, or fall victim to a terrorist attack while abroad. Elite Insurance Solutions would like to answer some questions about kidnap and ransom insurance that we have been frequently asked to help you understand exactly what this policy entails and if you should purchase this type of coverage for your employees.

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What exactly does kidnap and ransom insurance cover?

This type of insurance coverage addresses the exposure and liability of a company if an employee is kidnapped. Kidnap and ransom insurance also typically covers losses due to extortion (including cyberextortion) and terrorism. Not only is the company reimbursed for the ransom under this policy, but this insurance can also cover the costs of a professional crisis management team and a negotiator to resolve the incident, a public relations team to protect the image of the company, any damage to property, payments of reward for information that leads to resolution, travel expenses, and more. The kidnapping victim can also receive coverage for dental, medical, cosmetic, psychiatric, and rehabilitation care, loss of income, child care, personal financial loss, and, in the worst case scenario, funeral expenses.

Why would a kidnap and ransom insurance policy be beneficial for my business?

According to the article “Firms Snatch Up Kidnap and Ransom Insurance “ from Bankrate, one of the best reasons for a smaller business to have this type of insurance coverage is that is can be a cost-effective way to add a security force to the company. The product manager for crime insurance products at Travelers Insurance says, “A large company will very likely have a security arm or in-house security staff, whether to simply guard the building or advise executives on security matters, where a lot of smaller companies don’t have access to these resources. All major K&R (kidnap and ransom) insurers have associations with a crisis response firm that will provide guidance and assistance to their customers, to review security and travel protocols. It puts the emphasis on prevention rather than insurance. If your business has no security staff or advisors and requires travel to hot spots around the world, kidnap and ransom insurance is extremely worth it for your company and your employees.

Have questions about kidnap and ransom insurance? Contact Elite Insurance Solutions to learn more about this and other business insurance policies. Our agents will be able to give you the exact amount of coverage your business needs.

What Is Foreign Liability Insurance?

When you own a business, you have different insurance needs that depend on the type of business you do and on where you conduct your business. If you do business in countries outside of the United States, you most likely need foreign liability insurance coverage in case of any accidents that might occur in a foreign country in which you conduct business. Most standard U.S. business liability policies do not cover accidents that take place in another country. Our agents at Elite Insurance Solutions can help you decide if this type of insurance is necessary for your business. We would like to tell you more about foreign liability insurance by sharing with you some information from About Money.

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Why would I need foreign liability insurance?

You should consider purchasing foreign liability coverage if your business exports products to foreign countries and if your business includes a store, warehouse, or other physical location in a foreign country. Frequent business travel to foreign countries would be another reason to hold a foreign liability insurance policy.

What exactly is covered in a standard U.S. business liability policy?

This policy typically covers property damage and bodily injury caused by something that happens in the coverage territory, which is generally the United States, Puerto Rico, and Canada. Other situations that are covered under a standard U.S. liability policy include injury or damage that arises from temporary business travel in a foreign country by you or another insured and from products that you distribute outside of the United States if they are made or sold by you in the U.S.A., Puerto Rico, or Canada.

What are the different types of foreign liability insurance?

Foreign liability insurance includes two different types of policies: exporters package and controlled master program.

EXPORTERS PACKAGE

Designed for companies whose foreign business dealings are made up of U.S. products exported outside of the United States, the exporters package policy does not include physical locations, such as a store or a warehouse, in foreign countries. Covering product liability lawsuits for bodily injury or property damage that happens outside of the U.S., this type of policy can also cover incidental foreign travel and can be bundled with auto liability and personal property coverage.

CONTROLLED MASTER PROGRAM

If your business includes stores, warehouses, or other physical locations in a foreign country, you will need a controlled master program (CMP). This type of policy includes a master policy, which is written by an American insurer on a U.S. policy form, and one or more local policies, which are issued by an insurer located in the country where the physical location exists. When you have a CMP, the master policy applies on an excess basis and a difference-in-conditions over the local policies to ensure you are completely covered.

Does your company conduct business in foreign countries? Contact Elite Insurance Solutions to learn more about foreign liability insurance and how our agents can protect your business outside of the United States.

By Randy Hulett on August 12th, 2015 | Tagged with: Tags: , , , , | Leave a Comment