Being kidnapped isn’t something most people consider to be a hazard, and generally they give it no thought. However, it is a serious risk in many parts of the world.
Express kidnapping, which sounds like a variety
of fast food, occurs when an executive is grabbed
at an airport, quickly pulled into a vehicle and
taken to multiple ATMs to withdraw money.
There is usually a 24-hour withdrawal limit at
the ATM, so the person is kept for two to three
days and then released.
Executives are easy to spot: They tend to be
well-dressed, with multiple electronic devices
and expensive briefcases, and they tend to come
off the plane first, having flown first or business
class. Once the kidnappers identify the victim
and the level of importance within the company,
the situation may escalate. The employer and the
family often pay to avoid risking harm to their
employee or loved one.
FOUR INSURING AGREEMENTS FOR
Coverage, provided by ISO Form CR 00 40, Kidnap/Ransom and Extortion Coverage, has four
Kidnap/ransom and extortion — direct
Kidnap/ransom and extortion — expenses
Detention or hijack, and
In-transit delivery of property.
In most cases an individual is kidnapped for
cash, but other property may be demanded as
well. All are covered by insuring agreement one.
The fourth insuring agreement covers the
loss of property in transit in the custody of a
DEFINITIONS ARE KEY
The form distinguishes between “kidnap” and
“hijack.” A kidnapping occurs when someone is
involuntarily abducted by force for the purpose of
demanding money or other exchange for their re-
lease. Hijacking involves holding the victim under
duress while traveling in a motor vehicle, aircraft
or watercraft for any reason other than kidnap.
Hijacking is covered in the third insuring
agreement as long as it is for an “insured person,”
which includes directors, trustees, partners, members or employees of any insured, and relatives,
guests or residents in the household of an insured
person or a messenger. Relatives include spouses,
children, stepchildren, adopted and foster children, the spouse of a married child, a grandchild,
brother, sister, parent, adoptive parent, step-parent, grandparent, brother-in-law or sister-in-law, parent and grandparent-in-law.
UNDERSTAND THE EXCLUSIONS
The policy excludes dishonest, criminal or fraudulent acts committed by an insured person or
named insured. It also excludes the surrender of
property inside the premises unless first brought
inside after receipt of the ransom or extortion
demand, or outside the premises as a result of a
threat to do bodily harm to a person in possession
of property other than a messenger.
COVERAGE SHOULD BE CONFIDENTIAL
Keep such coverage confidential. The more people
who know about it, the likelier it is that kidnappers learn that employees of this company would
be prime targets because insurance coverage
exists. Kidnappers would likely see this as easy
money and target such employees; therefore, it’s
best if the employees have no knowledge of the
Christine G. Barlow, CPCU is managing editor with FC&S®,
the premier resource for insurance coverage analysis. She
has an extensive background in insurance underwriting.
Barlow may be reached at firstname.lastname@example.org. Additional
information about FC&S Online is available at
Kidnap & Ransom Coverage
EXECUTIVES AND THEIR FAMILIES ABROAD ARE VULNERABLE TO KIDNAP
AND RANSOM, BUT THE POLICIES HAVE SOME IMPORTANT EXCLUSIONS.
are risky, such
as going to an
unknown bar in
the city you’re
visiting or being
unsafe areas. Not
all taxis are trust-
some may be kid-
for a victim. For-
tunately, in most
cases the goal is
money, not harm
to an individual.
or the company
ing schools teach
to avoid being
what to do if it
occurs. Many re-
with the kidnap-
pers to get the
Christine G. Barlow CPCU