Kidnap/Ransom and Extortion
Insurance

At Chubb Executive Risk, our #1 priority is the safe return of the hostage or the satisfactory resolution of a crisis-a goal from which we do not deviate.

Kidnappings of employees or their family members, as well as extortion, are very real and significant threats. Chubb Executive Risk developed its kidnap/ransom and extortion insurance policy to both ensure the safety of employees and their loved ones, and protect a company's financial assets.

Due to globalization of economies, multinational companies need to prepare for the possibility of attacks on their employees and facilities virtually anywhere in the world.

An industry leader in kidnap/ransom and extortion insurance, Chubb Executive Risk has designed comprehensive insurance coverage to provide the maximum financial protection available in the event a corporation suffers a kidnapping or extortion crisis.

Our Policy
It's better to evaluate your coverage in the boardroom than in the courtroom. Consider the following protection features.

• Kidnap/Ransom Coverage - Our policy responds whether a person is actually abducted or a ransom was paid in the belief that a person had been taken.



• Extortion Coverage - Chubb Executive Risk includes protection for threats to:
  
  
  • damage any premises or tangible property located on the insured's premises;
  • contaminate raw materials or products of the client;
  • disseminate, divulge or utilize proprietary information of the Insured or
  • introduce a computer virus against an Insured.


• Ransom Delivery Coverage - Chubb Executive Risk insures money or other conveyed property used to pay a ransom or extortion demand.



• Additional Expenses - The policy indemnifies the insured for expenses they incur relative to handling a kidnap/ransom or extortion crisis. These expenses may include fees of independent negotiators, interest costs incurred for loans taken for a ransom or extortion payment, salary continuation, consequential personal financial loss, reasonable medical expenses, and other expenses approved by the insurer.



• Legal Liability Coverage - Our policy provides defense and indemnity coverage in the event of a lawsuit alleging the insured was negligent in a hostage retrieval.



• Political Threat Coverage - We reimburse for expenses when a person is wrongfully detained by anyone acting for a government or with the government's approval.

Chubb Executive Risk offers years of experience and professional expertise-from underwriting to outside consultants--along with a kidnap/ransom and extortion insurance policy designed to meet the needs of today's corporations.

Chubb Executive Risk and The Ackerman Group, Inc.
Chubb Executive Risk provides insureds access to the professional services of The Ackerman Group, Inc., one of the world's preeminent independent international security consulting firms specializing in handling kidnapping and extortion crises. The Ackerman Group can handle all aspects of a hostage recovery, including negotiations, liaison with law enforcement agencies, and conversion, protection, and delivery of ransom funds. Chubb Executive Risk clients work directly with The Ackerman Group during a crisis. Click here to learn more about The Ackerman Group.

RISKNET^TM
The Ackerman Group offers RISKNET, a comprehensive on-line risk forecasting service. Updated daily and accessible anytime from anywhere in the world, RISKNET chronicles terrorism, crime, and political stability risks in more than 80 countries. It highlights breaking developments relative to terrorism, crime and political stability from around the world, summarizes current political and criminal events, and covers other topics of importance, including airline and city travel guides. Chubb Executive Risk offers kidnap/ransom and extortion insureds access to RISKNET. This complimentary value-added tool will help corporations assess and better manage their international business and travel exposures. Click here to register for RISKNET.

The Initial Response to a Kidnapping
While no one can predict when or where a kidnapper or an extortionist might strike, there are steps you can take to help protect your company, your employees, and yourself in the event of such a threat. Click here to learn more.

Claim Examples

As unfortunate as it may be, the following scenarios have become more common in recent years. Our response to each scenario reinforces the importance and value of having a partner like Chubb Executive Risk.

Abducted while traveling on business - A company's branch manager was abducted while driving back from a business meeting. The kidnappers contacted the family and demanded $5,000,000.

The family immediately called the local police and then called the company's human resources manager, who contacted the company's designated security consultant. The consultant determined that local police officers were acting in conjunction with the kidnappers. Given the consultant's experience and knowledge of the country, the consultant contacted the local police officers' superiors and convinced them to negotiate the quick release of the victim.

Chubb Executive Risk covers the expenses of professional security consultants to assist in negotiating an employee's safe return. Early involvement of an experienced consultant can often mean the expedient return of a victim.

Threats from an employee - Fired for poor performance, an exiting employee who had a history of violent behavior demanded $100,000 and threatened bodily injury to his former supervisor if payment was not made. This verbal threat was followed by a series of threatening letters and stalking of the company's president.

The company called in security consultants to provide security for the president and deal with the extortionist. After several weeks, a meeting was arranged between the ex-employee and two state police officers. The man was informed of the seriousness of his threats and their legal ramifications. As a result of the meeting, the ex-employee agreed to his termination pay and stopped his activities.

Chubb Executive Risk offers access to The Ackerman Group to respond to extortion threats against a company's employees or property. In addition, we insure the payment of reasonable expenses incurred during an extortion crisis.

Extortion threats from an anonymous source - A company's CEO received an anonymous letter threatening to blow up several hotels unless a payment of $1,000,000 was made. The letter appeared to be authored by a radical political group.

Risk consultants were retained to analyze the letter and assess the level of risk. They advised that the risk should be taken seriously. The company heightened the security measures at their hotels, and working with local authorities, unsuccessful efforts were made to contact the extortionist. After four months, another threat was made, and contact was attempted. Eventually, the extortionist stopped all communication to the company, and no new threats were made.

Chubb Executive Risk's policy responds to extortion threats to destroy, damage, or contaminate a company's property.

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Application
Application - Oregon
Policy