Corp America January 2017

20 CORP AMERICA / JANUARY 2017 , Kidnap, ransomand extortion insurance more important than ever, as Dan Auslander, Senior VP and Professional Lines Practice Leader, V3 Insurance Partners LLC, explains. Protection for Your Most Valuable Assets Kidnapping and extortion are significant threats to organizations and their employees in the US and around the world. Kidnap and ransom is a global underground economy worth billions of dollars. No longer is it just the expatriate employee working in “dangerous” lands who is at risk. With today’s globally connected economy, domestic terrorism and technology’s universal reach, any place may be a target. While most of us think of kidnap and ransom as something that happens in dangerous spots overseas, approximately 84% of kidnappings in 2015 happened in the US and 16 percent occurred with employees living and working abroad. Wherever they are located, today’s kidnappers are sophisticated and have a variety of ways of threatening, scamming and extorting money. A hostage- ransom situation doesn’t even need to be physical in nature. For example, an executive could be contacted with the threat of kidnapping their children unless a ransom is immediately paid. Many organizations may not recognize the need for Kidnap, Ransom and Extortion Insurance (KRE). Company executives may not believe they have enough exposure to purchase a policy because their employees don’t travel or live in today’s known dangerous places. Unfortunately, most kidnap and ransom incidents happen here in the US. While there is no way to completely prevent a kidnap and ransom incident being proactive about protecting employees is something organizations can do. A KRE policy’s primary goal is to help preserve life and property. It provides for this in a variety of ways such as reimbursing the insured for expenses associated with hostage negotiators, ransom, transportation and medical expenses. It also provides coverage for the loss of ransom in transit. And, most importantly, it provides a dedicated security team for immediate deployment for a kidnap and ransom event. Having a security team available provides piece of mind. Many large, multi-national organizations have dedicated risk management professionals who oversee comprehensive security teams. For small to mid-sized companies this is a prohibitive cost made unnecessary if a KRE policy is purchased. A security team can provide analysis and a plan for employees – a proactive measure to protect employees and assets. For example, basic training to increase a traveler’s awareness of their surroundings might have prevented the following event: An American executive traveling in Mexico was grabbed while walking to his hotel. He was picked up and driven to an ATM and forced to withdraw money and robbed of his personal possessions. The kidnappers held him overnight and forced him to withdraw more money before releasing him. Ultimately KRE policies are essential to protecting your most valuable assets – your employees. Getting expert knowledge and access to security professionals plus asset coverage is a proactive, common sense business practice. Those without coverage may be placing both at unnecessary risk. 1701CA65 K Company: V3 Insurance Partners LLC Website: http://www.v3ins.com/