Kidnap, extortion and ransom. These are some of the risks grabbing the attention of Australian companies as they grow operations offshore.
While companies constantly worry about immediate threats to their bottom lines or productivity, other serious, and often unexpected, risks such as terrorism and kidnapping, can also wreak havoc on operations.
These are disruptions Australian companies are increasingly looking to protect against, driving the take up of niche insurance policies such as extortion and kidnapping protection.
The reality is that most large-scale businesses would have looked at this type of insurance. What we are now seeing is the small to medium enterprises considering the relevance of this coverage. Those that are looking to expand internationally and importantly those businesses are also aware of the threats domestically.
Mining and Energy companies that expand in developing and third world countries can be at risk of Executive kidnapping threats together with those that handle large amounts of cash or work with sensitive information or technology.
Australian financial services companies and energy groups rank at the top of businesses most at risk of kidnap and ransom threats. Ultimately, kidnap and extortion are motivated by commercial brands and perceived value and wealth. Also
Companies perceived to employ hundreds of employees carry with it huge risk – there’s an expectation that their employees are worth money.
Kidnap and ransom insurance protects companies against financial loss that can arise when an employee is seized or detained for ransom. These policies also cover wrongful detention and hijacking and are backed by crisis response consultants together with medical and emergency travel assistance. Cover extends to the properties that these businesses own, the products they manufacture and the people they employ in addition to their families.