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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.

Know the Facts About Life Insurance

Shopping for life insurance coverage can be overwhelming. Many people do not understand what all is involved when it comes to life insurance. Our agents at Elite Insurance Solutions want our clients to know the facts about life insurance, so we would like to answer some of the most frequently asked questions on this topic.

Do I need life insurance?

If you have dependents, you need a life insurance policy to help your family and your business if you were to pass away. However, not everyone needs life insurance. According to Bank Rate, this group includes people with grown children who live independently and single elderly people.

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How much life insurance do I need?

Typically, the amount of your life insurance policy should be equal to seven to ten times your annual salary, but there is a possibility that you could need more or not need that much. The agents at Elite Insurance Solutions can help you figure out the amount of coverage you need.

What is term life insurance?

To ensure you have the best protection while your children are young, term life insurance provides coverage ranging from five to 30 years. With budget-friendly annual premiums, these policies are ideal for many families. Having coverage to last until your youngest child completes college can give you peace of mind. Some term life insurance policies can even be converted to permanent insurance if desired.

What is permanent life insurance?

Also known as whole or universal, permanent life insurance policies never expire so the policies eventually do pay out. Additionally, a savings or an investment component is typically included and can appreciate in value over time. The downside of this type of life insurance is the annual premiums can be quite costly.

Do I need to add disability coverage to my life insurance policy?

To be sure you have some income in case of an illness or injury from preventing you from working, disability coverage can be added to your policy if you are not satisfied with the disability benefit at your job. Not every employer offers disability coverage, and many of those that do only cover half of your salary. Our agents can help you decide if you need to add a disability rider to your life insurance policy.

Have more questions about life insurance? Contact Elite Insurance Solutions to find out more about the facts on these policies.

By Randy Hulett on July 27th, 2015 | Tagged with: Tags: , , , , | Leave a Comment