Whether you are traveling overseas yourself or sending employees; worrying about flight times and foreign customs make it easy to overlook the risk of being kidnapped and/or extorted.
Kidnapping for ransom is a billion-dollar worldwide business run by experts in planning and negotiation. When you or someone you know is traveling outside Canada or the U.S. it is a threat worth considering. Western travelers are targets in many cities, and you don’t need to be a billionaire or professional athlete to be at risk.
How to Protect Yourself
Insurance companies like Hunter McCorquodale specialize in kidnap and ransom insurance. The plans provide a wide range of coverage, including:
● Kidnapping
● Extortion
● Illegal Detention
● Hijacking
● Mysterious Disappearance
● Hostage Crisis
● Virtual Kidnap
● Threat
Optional Extensions:
● Child Abduction
● Emergency Political Repatriation and Relocation
● Business Interruption
● Product Recall
● Workplace Violence and Assault
● Security Resource and Response
According to an article written by Control Risks; “Kidnap for Ransom in 2022”, the average global ransom demand in 2021 was 43% higher than the pre-pandemic average. The highest recorded ransom demand in 2021 was 77.3 million, 269% higher than the pre-pandemic recorded amount.
In addition to being emotionally devastating, such an event can destroy your family financially. Since kidnappings end in death less than 10% of the time, emotional trauma and financial loss are the most likely long-term outcomes.
Most insurance plans are customized and there is an extensive application that provides underwriters with the information required to assess the situation and set the premiums. The factors they will look at include location and length of travel, itinerary and the reason for your trip. The cost of such insurance is around $1000 per year, although it could be more depending on the circumstances.
While traveling the globe may offer amazing business opportunities and exotic vacations, kidnapping and extortion have become a nasty side effect. As companies continue to grow and people resume traveling, the challenge of protecting ourselves in what are sometimes hostile environments has become more prevalent.
Depending on where you are traveling, whether for personal or business, it may be in your best interest to consider this type of protection. If you need some guidance, give us a call.
Stay safe and have a great weekend,
Tracey
All insurance and segregated fund transactions are provided through Qualified Financial Services. Any information in the enclosed note is provided by Tracey Marshall who is a registered insurance agent under the Financial Services Commission of Ontario. QFS is not affiliated or related to Security Financial Services.
Sources:
https://www.controlrisks.com/our-thinking/insights/kidnap-for-ransom-in-2022?utm_referrer=https://www.google.com
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