War in Iraq, terrorism heightens exposure; insurers offercoverage, expertise

The war in Iraq has brought incidents of hostage-taking andkidnappings to the forefront. It seems that every few weeks the TVnews media broadcast new video of people being held hostage andpleading for their lives.

While the scenes are chilling and awful to watch, these types ofincidents have been an ongoing problem in others parts of the worldfor many years–but not highly publicized. Colombia, Mexico, Braziland Argentina are hotbeds of kidnapping activity. Indeed, Colombiahas the highest kidnapping rate in the world with 1,441 reportedabductions last year. Unfortunately, many more incidents gounreported.

Although it's difficult to track actual statistics, there's noquestion that kidnapping, extortion and illegal detention incidentsare on the rise. Some estimates suggest that more than 15,000incidents occur internationally each year. Those statistics arestaggering and a cause for consternation–particularly amongcompanies with foreign operations.

Employees who work for companies that conduct business abroadhave every right to feel anxious about traveling within the UnitedStates and to foreign locations these days–and many do. Many moreare starting to seek counsel or guidance from their employer abouthow to alleviate the anxiety and feel as safe as possible whentraveling on business.

Particularly since 9/11, more business travelers are thinkingabout incidents that could occur in airports, peculiarities aboutcertain destinations, and how to avoid becoming a victim of crime.They want answers to questions such as:

o How can I be safe while traveling?

o What will my company do if I become the victim of akidnapping, hijacking, extortion or detention incident?

o Who will take care of my family?

These are all fair questions and ones that companies and theirrisk managers must address.

Businesses have an obligation to protect their employees both athome and abroad. First and foremost, risk managers should work toreduce the level of employee anxiety about business travel.

One way to help employees is by providing travel securitybriefings. Most security companies offer on-site briefings bysecurity specialists. Often, these briefings are tailored tospecific cities so employees know what to expect before they leavehome, while they're in transit and once they arrive at theirdestination.

The briefings can also take the form of a video that can beviewed by employees at the office or at home. Many onlineorganizations offer this type of service. It's important to giveemployees the tools they need to feel more confident when travelingon business.

Second, risk managers should try to reduce the exposure theircompany faces from a potential kidnapping threat. Developing theright preventative measures involves learning how kidnappers andextortionists operate.

Kidnappers typically select their targets according toindividual or corporate wealth and vulnerability, so businessesshould take precautions to disguise and guard against both.Although management and employees have a tendency to think that “itwon't happen to me,” that attitude may, in fact, put them atrisk.

Risk managers can protect themselves and help their company'semployees by investing in kidnap and ransom insurance coverage. TheK&R policy covers the costs associated with the recovery ofabducted employees anywhere in the world. Covered costs includeransom payments, personal financial loss, security services, andemployee and family counseling.

A key component of the security service is the expert advisorswho are on call 24-hours a day, seven days a week, to negotiatewith kidnappers, work with law enforcement and provide otherservices to resolve an incident in a safe manner. Besideskidnapping, the insurance covers extortion, illegal detention andhijacking incidents.

The horrific events of 9/11 have prompted the U.S. government totake a number of steps to try to protect the American people fromterrorist threats. However, while the government is doing its partto try to protect the country and its citizens, it can't do italone.

It is up to businesses and individuals to take responsibilityand be proactive about protecting themselves and their employeesfrom potential threats such as kidnapping, extortion and illegaldetention.

Risk managers can pull together a team of people responsible fordeveloping a plan to help reduce employee anxiety about nationaland international travel, then distribute the plan to employees andbegin implementation. The plan should include the extra protectioninsurance coverage can provide.

Unfortunately, kidnapping is a crime that goes unchecked in manyparts of the world due to ill-equipped and poorly trained lawenforcement agencies and a legal system that accepts favors orfears violent retribution.

While that environment has allowed kidnappers to develop theirskills over the years, the expert advisors have also honed theirnegotiating techniques. That means very few hostages are killed orinjured during an incident.

The good news is that risk managers who add K&R coverage totheir insurance portfolio that includes an expert advisor to handlenegotiations, experience a greatly increased chance that theirvictim will emerge safe and unharmed from an incident.

David Lattin is director of industry practices for financial andprofessional services at St. Paul Travelers.

Caption for main art:

Risk managers can play a key role in training employees on howto avoid being kidnapped, as well as hiring experts to help recovera worker safely if they are taken for economic or politicalreasons.

“Although management and employees have a tendency to think that'it won't happen to me,' that attitude may, in fact, put them atrisk.”

David Lattin

Flag: RM Tips

What Can You Do?

Risk managers can not only help to prevent kidnapping ofemployees but set the stage for a safe recovery as well if theworst should occur. Here are a few steps to consider:

o Provide travel security briefings, in person and/or viavideo.

o Be specific about potential threats. Tailor briefings soworkers know what to expect before they leave home, while they'rein transit and once they arrive at their destination.

o Work to reduce the possibility of a potential kidnapping bydisguising corporate wealth and guarding againstvulnerabilities.

o Consider kidnap and ransom insurance that covers ransompayments, personal financial loss, security services, and employeeand family counseling.