SPECIALTY INSURANCE SOLUTIONS

EXTORTION, KIDNAP & RANSOM

WHAT IS IT?
Extortion, Kidnap & Ransom Insurance responds when an individual is endangered by criminals who want to gain access to industrial secrets, make socio-political statements, or for monetary gain. It has been estimated that there are between 8,000 – 10,000 kidnappings a year globally. [source: CNN]

When such a situation arises, Extortion, Kidnap & Ransom Insurance responds by appointing an emergency response team, expertly trained to respond to these complex and harrowing experiences. This team is then charged to do anything within their power to safely repatriate the victim by communicating professionally with the kidnappers and negotiating a ransom and safe release.

WHY TRISURA?
Trisura has partnered with industry leaders to provide coverage for Canadian companies who do business in territories where this type of peril is common.

Our products are written with the support of Sutton Special Risk, a leader in this class of business, who has been at the forefront of Extortion, Kidnap & Ransom Insurance for over three decades.

Should a situation arise, our customers will benefit from the 24/7 emergency response of the Control Risk Group. Control Risk Group has been helping companies, their employees and their families negotiate through frightening scenarios since the 1970s. These experts provide support, advice, and expertise based on their experience with over 1,000 emergency situations worldwide.

COVERAGES
  • Ransom which has been surrendered
  • Ransom which has been lost in transit
  • Fees and Expenses for Control Risks Group (unlimited)
  • Various Additional Expenses, including Rest & Rehabilitation
  • Personal Financial Loss
  • Legal Liability
  • Personal Accident
  • Customized Definition of Insured Person to meet the needs of the insured party

Additional Coverages Available
In addition to our comprehensive Extortion, Kidnap & Ransom policy, we also offer the following coverage extensions:

  • Emergency Political Repatriation and Relocation Extension
  • Loss of Earnings Extension
  • Computer Virus — Business Interruption Extension

Special Contingency — Kidnap, Ransom & Extortion Insurance
In the event of a kidnap, detention or extortion incident covered by the policy, your clients will benefit from Control Risks’ services as part of their insurance policy. The expense for these services is outside of the limit of liability provided by the policy.

Appetite
We underwrite all risks on an account-by-account basis taking into consideration the unique risk characteristics of each applicant.

International Exposure
We underwrite accounts incorporated in Canada with international exposures.

Minimum Premiums
We do not have minimum premium thresholds. Our premiums are dependent on destinations being travelled to, the number of employees and frequency of travel.

Classes
We apply our underwriting expertise to any class of private, public, not-for-profit corporations, or individuals in order to find a solution with a focus that best suits their need.

FIVE THINGS YOU SHOULD KNOW ABOUT EXTORTION, KIDNAP AND RANSOM
1. Despite global economies, the world is a scary place for western business people.
Even small- and mid-sized companies now do business far beyond our borders, which means that their employees can be found almost anywhere. That is not good news when you consider that some of the world’s fastest growing economies are also the leaders in extortion and kidnapping. Mexico suffers as many as 500 kidnappings a month, with Russia (and former Soviet countries) coming a close second. In fact, most of Central and South America and large parts of Eastern Europe and Asia have become increasingly dangerous places to work and live.

2. Ransoms are becoming huge.
Not surprisingly, companies do not like to disclose the amount of money they paid for the safe return of employees and their families. What we do know is that demands for values as high as $25 million are now the norm. The Control Risk Group’s own numbers demonstrate that most kidnappers will negotiate a lower amount — with an average payout of $1.8 million. The exception is Russia, where kidnappers have remained steadfast to their initial demands.

3. There’s big money in kidnapping kids.
It is no surprise that kidnappers have discovered people are willing to pay more money for the safe release of children. It is estimated that up to 80% of kidnap victims are under the age of 18.

4. Internet terrorism is on the rise.
In the Internet age, extortion has become a serious threat to web-based companies. A savvy programmer can bring down a website located anywhere in the world using complicated Distributed Denial of Service (DDoS) attack that renders the site inoperable. They then demand a ransom to stop. These attackers use an army of bots that they use to infect thousands of individual computers, turning them into slaves of the hacker. In many cases there is no way to stop the attack unless you pay the ransom.

5. Most insured victims live.
The good news is that when a kidnapped person has insurance coverage and a professional response, they are likely to survive the ordeal. In most cases, the bad guys want money, and if we can provide them with what they want, everyone stays safe. In fact, only 2% of abducted persons die when expert negotiators are involved — and the majority of these occur at the time of the abduction.