Kidnapping - A Billion Dollar Business

Whether you are traveling overseas yourself, or sending employees; worrying about flight times and foreign customs make it easy to over look the risk of being kidnapped; but you shouldn’t.

Kidnapping for ransom is a billion-dollar worldwide business run by experts in planning and negotiation.  When you or someone you know is traveling outside North America, it is a threat worth considering.  Western travelers are targets in many cities, and you don’t need to be a billionaire or professional athlete to be at risk.

How to Protect Yourself

Special insurance companies have now developed kidnap and ransom insurance.  The plans provide a wide range of coverage, including:

• Ransom Money
• Informant Money
• Accidental Death
• Legal Liabilities
• Rehabilitation
• Personal Security Consultation
• Reward Money
• Negotiation Services
• Family Counseling
• Loss of Ransom in Transit
• Medical Services and emergency evacuation
• Interpretive and forensic services
• Business security consultation

From 2006 to 2012, the number of kidnappings and dollar amounts of ransom demands have increased by an estimated 100%.  In more than 14 countries cases of $25 million or more in settlements were recorded in recent years.  In Mexico alone, the first six months of 2013 had over 750 kidnappings, the highest in more than 15 years.

In addition to being emotionally devastating for your family, such events can destroy you financially as well.  Since kidnappings end in death less than 10% of the time, emotional trauma and financial loss are the most likely outcomes.

Most insurance plans are customized and there is an extensive application that provides underwriters with the information required to assess the situation and set the premiums.  The factors they will look at include; location and length of travel, itinerary and the reason for your trip.  The cost of such insurance is around $1000 per year, although it could be more depending on the circumstances.

While the global markets have created amazing business opportunities, kidnapping and extortion have become a nasty side affect.  As companies continue to grow and expand internationally, so does the challenge of protecting valuable employees in what are sometimes hostile environments.

So if you are traveling for business, it is in your best interest to look into getting yourself protected.  If you need some guidance, give me a call.

Stay safe and have a great weekend,

Tracey

All insurance and segregated fund transactions are provided through Hub Financial.  Any information in the enclosed note is provided by Tracey Marshall who is a registered insurance agent under the Financial Services Commission of Ontario.  Hub Financial is not affiliated or related to Security Financial Services.

Source:  original article posted on Advisor.ca by David Wm. Brown, 04-28-14