Kidnapping and ransom demands are not just the stuff of movies and late night TV. They occur more often that people think and insurance policies are available to address this important risk. Business insurance policies, personal stand-alone policies and even an endorsed homeowner’s policy can all provide financial assistance for kidnap and ransom situations.
Although you may not have considered the costs associated with a kidnapping, there are many expenses and a good kidnap and ransom insurance policy can help you or your business with these costs. Consider the cost of a professional hostage negotiator, wage and production losses and the total ransom demand. All of these costs can be addressed by a solid insurance plan.
What Will It Cover?
It is easy to overlook the costs associated with a kidnapping event; it is also easy to misunderstand the needs of someone facing a kidnapping situation, which amount to a lot more than just a ransom payment.
The ransom payment is just one component of a hostage situation. You will also have to contend with a potential loss of income or loss of business due to a kidnapping situation. These costs can be significant for a key person in your business. You may also have extra expenses associated with the absence of this key person such as additional wages or contractor fees.
Do You Really Need Kidnap and Ransom Insurance?
In today’s political climate, it is easy to see the potential for kidnapping situations especially overseas. With terrorism as a constant threat, kidnapping situations are a very real concern for many businesses.
Make sure you are protected financially with a kidnap and ransom insurance policy or endorsement to your existing business policy. When you purchase this type of policy you will not only gain the satisfaction of being financially protected, but also you can also be confident that your insurance company has the expertise on hand to help you deal with such a difficult situation. If you have questions about a kidnap and ransom insurance policy and your coverage options, be sure to contact a professional agent today.