By: Advocate Brokerage
A U.S. oil company engineer working in South America is kidnapped from his car by anti-government guerrillas, who demand a huge ransom for his return. His wife and company turn to an international operative who is experienced negotiating with terrorist kidnappers – and, if necessary, taking action to win a hostage’s release. Proof of Life staring Russell Crowe, Meg Ryan and David Morse is an action-packed fictional story. However, the U.S. State Department warns, in real life such things happen to real people. Read on to find out if your business needs to be prepared.
How does a Kidnap & Ransom Insurance Policy work?
Known as K & R policies, they reimburse the company for costs associated with ransom demands, rather than pay the demands directly. In addition to ransom, K & R policies often cover other expenses related to a kidnapping incident such as:
Who needs a K&R policy?
If you or your employees travel for business to high-risk areas around the world or if your business deals with large amounts of cash, you should consider a K&R policy. Travel areas that are considered high-risk include:
What to look for in a K&R Policy:
AIG recommends taking the following points into consideration when making decisions about this type of coverage:
Is a K&R policy is in your future?
No one wants Proof of Life to be part of their story! Although it is great as an action-packed motion picture, it would never be fun in real life! If any of the information in this article made you wonder if you should consider a K&R policy of your own, make an appointment to review your business insurance with Advocate Brokerage. Together we can resolve whether a K & R policy is important to protect yourself as well as your employees.