Kidnap And Ransom

Kidnap-for-ransom situations have commonly been known to occur in areas of political strife and poor law enforcement. Africa in particular has, in recent surveys, accounted for approximately a quarter of global kidnappings with Nigeria, Kenya, Libya and Mozambique being most significantly affected. Whilst most victims in the past were wealthy local businessmen and their dependants, foreign nationals have also been targeted and, with the progressive rise of the global economy, continue to be targeted. In addition, the factions perpetrating these crimes are moving across borders into neighbouring countries sometimes partnering with criminal elements in countries further afield to achieve their financially or politically motivated aims.

In order to provide corporate entities with critical guidance and financial assistance in managing kidnap-for-ransom and extortion events, SHA presents its Corporate Protection Insurance, a bespoke insurance product with the main purpose of providing Insured parties with the expert crisis management services of Control Risks in order to minimise the negative effects of these difficult situations.

The Control Risks’ response team has unparalleled experience and expertise in resolving cases of kidnap-for-ransom, piracy, extortion, threat and illegal detention. Since its formation in 1975 Control Risks has established 27 offices on five continents and has worked in 123 countries on the resolution of over 2 340 cases in managing strategic and operational risks associated with these events.

Core coverage and optional extensions

Core Cover

Choice between Corporate Protection for Named Insured only OR Corporate Protection wherein Insured Person is defined so as to include the family, employees or guests of the named Insured as well as personnel employed to negotiate/deliver a ransom for the release of an Insured Person.
Reimbursement of ransom monies paid (or lost in transit) to meet a Kidnap, extortion, products extortion, hostage crisis or hijack demand.
Reward for information that directly assists in negotiations and/or release of victim or conviction of responsible parties.
Fees for professional support services incurred prior to and within 36 months of release. Travel costs to return victims to their “home” country.
100% of gross salary of victim and/or family member involved in negotiations for up to 60 days after release and in the case of detention for up to 72 months
Costs & expenses incurred in retraining the victim for his job (including payment of victims salary during period of retraining.
100% of gross salary of a temporary replacement for the victim within the corporation.
Virtually any costs associated with obtaining the release of a victim or incurred during and as a direct result of an insured event.
Costs for cosmetic surgery to correct permanent disfigurement resulting from insured event.
Legal liability of the insured company for damages claimed as a result of an insured event.
Losses for personal accident leading to death of bodyguard and/or vehicle operator will be 20% of limit and in addition thereto.
Death benefit if the kidnap victim is not found within 36 months (subject to repayment should the victim subsequently be found alive).

Emergency political repatriation and relocation of an insured person

Costs of travel to and accommodation at nearest place of safety;
Reimbursement of salary of insured person during repatriation for up to 180 days or until date of relocation;
Personal effects of an insured person that are lost due to emergency repatriation.

Expenses due to an express kidnap

Ransom reimbursement following the hijack of one or more Insured Persons for a period of less than 24 hours
Personal Accident

Expenses due to an investigation following a disappearance (36 hour waiting period)

Fees and expenses incurred by the nominated response consultant in the investigation of the disappearance of an Insured Person for a period not to exceed 120 days from date of disappearance
100% of the missing person’s gross salary
100% salary of a temporary replacement
Costs of repatriation of the body of an Insured Person
Death benefit payable if an Insured Person disappears and is not found within 12 months

Threat expenses (120 day indemnity period) being threats to the Assured or an Insured Person without a ransom demand)

Fees and expenses incurred by the nominated response consultant, and additional expenses to assess threats to:
- Kill, injure, abduct or detain an Insured Person
- to damage, destroy or contaminate property
- to reveal confidential or proprietary information
- to imply that an Insured Person or the Assured may be at risk.

Hostage crisis (1 hour waiting period)

The illegal holding of one or more insured person(s), for a period in excess of one (1) hour, by an opposing party who demands that a set of specified terms are met as a condition of the release of such insured person(s)
Ransom reimbursement and additional expenses
Personal Accident

Loss of earnings due to an insured event (indemnity periods may vary)

Business interruption following a kidnap, extortion, malicious detention, hijack or a contingent extortion.

Assault expense

A physical attack by person(s) who are armed with a weapon against an insured person that results in the serious physical injury, death or dismemberment of an insured person that occurs on the Assureds property
Response fees
Personal Accident
Additional expenses