May 21, 2013
Full protection comes from choosing an experienced crisis response firm with specific skills, says Lockton Report.
KANSAS CITY, Mo., May 16, 2013 — /PRNewswire/ — The ransom and extortion industry is lucrative and the danger zone has expanded well beyond Central and South America, yet companies tend to downplay the importance of a Kidnap & Ransom insurance policy.
Too often, companies complete an insurance application, choose the lowest price, and file it away without giving much thought to the decision that can make all the difference on the safety of their staff. A new report by Lockton explains how to choose a crisis response firm so that K&R insurance offers not only protection, but also preparedness in the event of a kidnapping.
The report, authored by Lockton’s Michal Gnatek and entitled “Out the Shadows: Selecting Your Kidnap & Ransom Partners,” identifies ransom and extortion industry trends and danger zones. Gnatek then reviews a process for securing K&R coverage and vetting crisis response teams to ensure a comprehensive insurance program.
“We recommend that insureds focus on the back room: the crisis response firm that will be on the other end of the phone when the need arises,” Gnatek said. “They should have extensive language capabilities and a good history of successful negotiations, among other things.”
After choosing a crisis response team, Lockton recommends companies work with their insurance broker to select the insurer who can meet their needs. There are many factors to consider, including the relationship between the insurer and the chosen crisis response firm. An experienced insurance professional can provide guidance throughout the process.