Kidnap/Ransom and Extortion
Mike Ackerman, Managing Director of The Ackerman Group, Inc., warns that the decade of the '90s "...will see more than the usual amount of political violence, which will manifest itself both in civil unrest and terrorism."
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Companies recognize the need to be a part of the global marketplace and corporate employees conducting business outside their own country expect to encounter language barriers, exotic customs and diverse negotiation styles. What they cannot predict is political upheaval and increasing danger of abduction and after a kidnapping or extortion threat are vital elements of corporate risk management.
The Policy
Our policy is distinctive in the marketplace and designed to provide maximum
financial protection available in the event a corporation suffers a kidnapping
or other extortion loss. Features that make the Chubb policy unique include:
Kidnap/Ransom Coverage - the policy responds whether a person is actually abducted or ransom was paid thinking a person had been taken.
Extortion Coverage - Chubb automatically includes protection for threats to:
- damage any premises or tangible property located on the insured's premises;
- contaminate raw materials or products of the client;
- disseminate, divulge or utilize proprietary information of the Insured or
- introduce a computer virus against an Insured.
Delivery Coverage - insures money or other conveyed property used to pay a ransom or extortion demand.
Additional Expenses - Chubb's priority is the safe return of a kidnap victim. We extend coverage for additional expenses and defense costs accrued in order to gain the release of a hostage. Those expenses may include fees of independent negotiators, interest costs on loans taken for ransom payment, salary continuation, consequential personel financial loss and reasonable medical expenses.
Legal Liability Coverage - protection in the event it is alleged the Insured was negligent in a hostage retrieval.
Political Threat Coverage - coverage for expenses when a person is wrongfully detained by anyone acting for a government or with the government's approval.
Optional Threat Response Expense Coverage - payment for expenses incurred when the Insured utilizes the services of the Ackerman Group, Inc. to investigate extortion threats when no monetary ransom demand has been made.
Chubb's broad definition of who is insured covers the corporation, employees and family members.
Ackerman Group, Inc.
The goal of our entire program is the safe return of the hostage or the
satisfactory resolution of a crisis-a goal from which we do not deviate.
Chubb's commitment and concern is demonstrated by providing access to
the professional services of The Ackerman Group, Inc. an independent international
security consulting firm retained to help support the client.
This organization provides the knowledge and resources needed to handle a tense emergency situation. Clients can also contact them for consultation on security procedures and crisis management prior to an extortion threat. Moreover, Chubb clients are guaranteed immediate response from The Ackerman Group Inc. and work directly with this independent firm during a crisis.
Years of experience and professional expertise from underwriters to outside consultants; along with a policy designed to meet today's needs-that's Kidnap/Ransom Insurance from Chubb Executive Protection.
Source, Chubb & Sons